|Woo hoo! Today the SEC started probing Freddie Mac because it turns out the executive staff was dumping their insider shares hand over fist just days before they were all fired.|
Folks, you're going to have to face the facts. This company is nothing more than another Enron or Worldcom. A company that is based on defrauding public shareholders is doomed to collapse eventually.
Freddie Mae might last another few months, but just like Enron and Worldcom and all the dot.bombs, this stock is headed to zero.
The only bad part is that YOU, Joe Taxpayer, will have to pay every penny of the bailout costs when this fraud of a company DOES go under. Isn't that lovely?
Short to zero, folks. Short to zero. I've been noticing a LOT of activity on "longshot" put options with FRE.. Looks like quite a few people in the know are placing their bets ahead of time that this company is a goner.
Also a half-dozen class action lawsuits were filed today, accusing the company of racketeering violations and fraud. Why does this story sound familiar? Who out there is holding up the stock of this scam? The fed? Think they're planning a LTCM bailout plan to keep the entire home mortgage bubble alive for a few more months?
Chitwood & Harley Files Securities Class Action Suit on Behalf of Purchasers of Federal Home Loan Mortgage Corporation Between April 18, 2000 and June 6, 2003;
Wolf Haldenstein Adler Freeman and Herz LLP Commences Federal Home Loan Mortgage Corporation Class Action
Spector, Roseman & Kodroff, P.C. Announces Class Action Lawsuit Against Federal Home Loan Mortgage Corporation -- FRE
Emerson Poynter LLP Announces Class Action Lawsuit Against Federal Home Loan Mortgage Corporation -- FRE
All of these were just the ones filed TODAY, after the bell.