Do you think that Freddie Macs Shareholders are safe for the most part?

Question

Do you think that Freddie Macs Shareholders are safe for the most part? I mean with the Government going to back them up and everything. Today there stock was up 11.34%. Tell me what you think. Is it worth the risk (The Risk rather Big or Small) to invest with them?

Answer 1

Yes, as stated by the federal governement.  

They basically said, they CAN NOT let them go under.  If that were to happen, then it would create even more problem for the US.  So it wont happen by any means. 0 chance.

If if they kept falling, the feds would "infuse" money into both freddie and fannie, because feds can esentially make money out of thin air.  (in other words, they can put 100 billion into a company without getting it from anywhere, however, this is a rare thing for feds to do.)

Answer 2

yes they are not going anywhere

Answer 3

Don't count your chickens. While their paper is good the equity side is going to be out in the cold, dividends are out of the question and the government will be sticking their noses in every aspect from this point forward.

Aside from a fleeting comment that the government may consider buying shares, nothing is binding and it would suit the politicians wanting to return it to the FHA fold just fine if the equity price was as close to zero as possible before that happens.

Answer 4

The US won't let them go under AND they are helping the business.  What is better than that?  If you are a true long term investor and do not freak out when things are down, then yes.

If I had money I would buy them but I am all tied up in BAC.