What is Happening To The Mortgage Companies and Financial Stocks?

Question

What is Happening To The Mortgage Companies and Financial Stocks?

Answer 1

People are finally starting to realize that a bailout isn't a good thing

Answer 2

debt, debt, debt!

if the us hasnt noticed, you guys are in full recession, and if the republicans win your election, you won't be getting out of it.

Answer 3

Chickens are coming home to roost.  The mortgage companies and banks made (or bought) a lot of bad mortgage loans and other bad investments.  Bad business decisions lead to losses.  Those losses (and fear of disclosure of more losses) are causing stock prices to drop.

Answer 4

A good number of financial and mortgage companies are hiding their losses.  But they can't hide their losses forever.  Eventually they'll have to come clean.  And that's what the stock market traders are anticipating.

Perhaps the US government won't let big companies like Freddie and Fannie Mae fail completely.  But by the time the Federal Government takes over them.  Their shares are probably going to be worthless, the way the IndyMac (IMB) shares have recently become worthless.