USD1 buck!! The price for Fannie & Freddie - A plate of Char Kueh Tiau

Posted by Kris | Tuesday, September 09, 2008 | | 0 comments »

These 2 troublesome twin really hit rock bottom. As of now, the stock price is hovering around USD1 !!! For a institution that hold roughly 50% of the total US mortgage debt, USD1 is very very unbelievable. Even Bear Stern is worth USD2 when JP Morgan first announced that they are going to bailout them.When Mr.Paulson mentioned that the rescue package will protect tax payer but not current shareholders, the price already is baked in into today's trading.

Really hard to believe that a company once so great and almighty can go so low and cheap. I thought only Malaysian stocks can experience this type of humiliation. But such Malaysian stocks usually are speculative counters not like "ONCE" solid fundamental companies like Freddie and Fannie.

Btw: The oracle of Omaha, Warren Buffet casually ignored the offer to bailout these 2 twins. Really smart man, if he were to do so..his decade long hard work, Berkshire will be gone in a single puff.