Reply #50: What's the deal with Fannie and Freddie? [View All]

[tclambert]

Fannie Mae was up 17 cents yesterday and another 5 cents today. Doesn't sound like much until you figure the percentages. It was 57 cents/share and is now 79 c/s. That is a 38+% increase in TWO DAYS. The talk about putting Freddie and Fannie's bad assets in a "bad bank" is so far just talk. The announcement that James Lockhart is leaving his post doesn't seem like the kind of news that would cause a 38% jump in share price.

Mind you, I'm not complaining. I'm still not back to breakeven on my tiny investment in Fannie Mae, though for ten minutes or so today, my investment made it into positive territory. (Fannie peaked at 93 cents/sh and my breakeven is about 85 c/s, for those who are keeping score at home.)

Still, I'd kinda like to know why.

My guess is some big investor (corporate, fund, brokerage) decided to bet on Fannie's future and THAT investment moved the market. (My micro investment moved the market about .0000001 cent.)

But WHO?