More Mortgage Meltdown
The headlines for Freddie and Fannie sure are different in the Wall Street Journal and The New York Times. The Journal headlines imply a Treasury and Federal Reserve "bolster" of the two agencies, while the Times implies a government "bailout." The Treasury is increasing the two mortgage companies' line of credit and may buy stock in the two struggling firms. I guess we'll know in a few weeks whether it was a bailout or a bolster. It's kind of like that old song, "You call it bailout, I call it bolster, let's call the whole thing off."
IndyMac is getting the press with its government takeover, but hot on its heals is another pending Orange County banking disaster. Downey Saving's stock closed Friday at $1.69 per share, down from nearly $7o per share at the end of May 2007. At a price of $1.69 per share, I am going out on a limb and guessing that Downey's future looks dismal.