The housing market is a total debacle right now. People with no-interest or ARM (adjustable rates) loans are falling by the wayside; foreclosures are at an all-time high; new housing starts are sinking, with many new construction projects being abandoned before finishing; houses (new or used) aren’t selling so hot; and market values are plummeting nationwide. Yet Fannie Mae, a government-sponsored enterprise, is suspiciously gaining ground. It’s stock price has consistently gone up throughout August, and in fact, the current price – at $52.76 – is 27% higher than its 52-week low. You do the math. How can that be? However, in spite of this significant rise, the analysts appear to be fairly quiet as regards recommendations. Perhaps there’s a “consumer confidence” measure going on here.
Source link: http://archive.mises.org/5557/fannie-mae-big-guv-up-to-no-good/