Monday, September 8, 2008

Fannie and Freddie are Done

Stock markets worldwide are moving higher as news of the U.S. Government seizing control of Fannie and Freddie is digested. Have we now officially passed the low point of the mortgage mess? Maybe.

I object to this being called a bailout, since current shareholders in the common stocks will likely get nothing. These two institutions aren't being saved, they are being killed.

Oil and the dollar aren't doing much at all as the focus is clearly on financial stocks. A straightforward rally would be nice for a change.

No comments: