Fannie and Freddie outlook?

Question

What do ya think will happen two these two giants? I personally think the government will bail them out as they are the biggest mortgage companies in the country.

Answer 1

even if the govt does bail them out

its not a good buy

Answer 2

Stay away from the stocks.

Answer 3

I agree, I think the government must bail them out, otherwise we will have a catastrophe on our hands in the residential real estate market.  If there is no money available to lend, then the real estate market will come to a stand still.  If that market falls off a cliff, you can bet on a worse recession.

Scott Cole

www.kungfutrader.com