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Does anyone else get a surreal feeling when they read this? WTF kind of economic system do we have - I'm getting number:confused:
The following quote ... which seems to apply to the stock market in general:
"They’re not free- enterprise companies, and the normal fundamentals that drive a business or an investment don’t apply.”
http://www.bloomberg.com/apps/news?p...d=aXcD0C1Lga.s
Aug. 5 (Bloomberg) -- American International Group Inc., Fannie Mae and Freddie Mac, three companies the U.S. government took over because of last year’s financial crisis, surged in New York Stock Exchange trading.
AIG jumped 59 percent to $21.46 at 1:34 p.m. in New York, Fannie Mae soared 32 percent to 75 cents and Freddie Mac rallied 31 percent to 80 cents. Their gains added more than $5 billion to the value of the government’s stakes.
All three are government-controlled because of last year’s financial crisis. AIG has posted six straight quarterly losses through March 31 and needed a $182.5 billion bailout after regulators determined the insurer was too important to fail. The U.S. took control of Fannie Mae and Freddie Mac, created by the government to expand homeownership, in September as their losses threatened to further roil the housing market.
“Institutions under government conservatorship are speculative bets,” said Michael O’Rourke, chief market strategist at BTIG LLC in Philadelphia. “They’re not free- enterprise companies, and the normal fundamentals that drive a business or an investment don’t apply.”
AIG, based in New York, advanced after Radian Group Inc. reported $231.9 million in profit, spurring a rally among insurers. Fannie Mae and Freddie Mac climbed as a person familiar with the matter said that James Lockhart, the director of the Federal Housing Finance Agency that oversees them, is resigning.
The U.S. owns 78 percent of Washington-based Fannie Mae and AIG and 80 percent of McLean, Virginia-based Freddie Mac, according to data compiled by Bloomberg.
The following quote ... which seems to apply to the stock market in general:
"They’re not free- enterprise companies, and the normal fundamentals that drive a business or an investment don’t apply.”
http://www.bloomberg.com/apps/news?p...d=aXcD0C1Lga.s
Aug. 5 (Bloomberg) -- American International Group Inc., Fannie Mae and Freddie Mac, three companies the U.S. government took over because of last year’s financial crisis, surged in New York Stock Exchange trading.
AIG jumped 59 percent to $21.46 at 1:34 p.m. in New York, Fannie Mae soared 32 percent to 75 cents and Freddie Mac rallied 31 percent to 80 cents. Their gains added more than $5 billion to the value of the government’s stakes.
All three are government-controlled because of last year’s financial crisis. AIG has posted six straight quarterly losses through March 31 and needed a $182.5 billion bailout after regulators determined the insurer was too important to fail. The U.S. took control of Fannie Mae and Freddie Mac, created by the government to expand homeownership, in September as their losses threatened to further roil the housing market.
“Institutions under government conservatorship are speculative bets,” said Michael O’Rourke, chief market strategist at BTIG LLC in Philadelphia. “They’re not free- enterprise companies, and the normal fundamentals that drive a business or an investment don’t apply.”
AIG, based in New York, advanced after Radian Group Inc. reported $231.9 million in profit, spurring a rally among insurers. Fannie Mae and Freddie Mac climbed as a person familiar with the matter said that James Lockhart, the director of the Federal Housing Finance Agency that oversees them, is resigning.
The U.S. owns 78 percent of Washington-based Fannie Mae and AIG and 80 percent of McLean, Virginia-based Freddie Mac, according to data compiled by Bloomberg.
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