ok so what is the deal with the stock prices for freddie mac and fannie mae. at .70 i say buy !!!but if they become nationalized stockholders will be pushed out. any thought on whether or not they will be nationalized??
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ok so what is the deal with the stock prices for freddie mac and fannie mae. at .70 i say buy !!!but if they become nationalized stockholders will be pushed out. any thought on whether or not they will be nationalized??
If they become nationalized, doesn't the government still have to buy out the shareholders? The U.S.A. is not like a Communist country that's just going to take people's property without compensation.
Besides, isn't the government just going to own a percentage of those entities, not the whole thing (like the banks it is bailing out)?
moneypenny
I have to dig further into this. The way I understand it is that is they become nationalized and receive help from the gov that the shareholders will pushed out.
Does anyone currently own any Freddie or Fannie stock..
Anyone own any Citigroup Stock?
ok,
If they are nationalized stockholders will receive nothing...The way i see it is that once the stocks reach a ridiculous low the organizations will be nationaized, then the stockholders cant complain about huge loss. I think they will nationalize them, get them up and running again and then sell the stocks back at a profit allowing freddie and fannie to return back to the private sector with the government making money on the investment...
So even though I am very tempted to "buy buy buy" I think I am gonna pass for now.
Does anyone out there have any insight. Do i see this wrong? There could be a lot of money to be made if fannie and freddie do not become nationalized and the stocks increase to around two dollars.