CRIMES AND CORRUPTIONS OF THE NEW WORLD ORDER NEWS (mparent7777_1) wrote,
CRIMES AND CORRUPTIONS OF THE NEW WORLD ORDER NEWS
mparent7777_1

Freddie Mac's negative net worth raises questions

Thu Aug 7, 2008 6:19am EDT

By Dan Wilchins - Analysis

NEW YORK (Reuters) - By Freddie Mac's own admission, it has a negative net worth -- the latest reported net market value of the mortgage giant's assets is negative $5.6 billion.

To some investors, that means its shares should be trading closer to zero. Bears argue that the company's bonds are a reasonable investment given the U.S. government's increasingly explicit support, but its shares are a more questionable investment.

Freddie Mac's shares moved closer to zero on Wednesday, dropping nearly 20 percent to $6.49 after it posted a much-wider-than-expected quarterly loss of $821 million.

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Tags: economy, freddie mac
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