InvestorsHub Logo

Tex

Followers 5
Posts 3639
Boards Moderated 0
Alias Born 07/11/2003

Tex

Re: roiresearch post# 2607

Wednesday, 09/17/2008 2:22:10 PM

Wednesday, September 17, 2008 2:22:10 PM

Post# of 46208
government backed penny stock?

Just because debt holders have protection doesn't mean equity owners do. The shares are so devalued you can't even vote against them at Motley Fool CAPS any longer. The company doesn't need to liquidate to deprive common owners of equity. Hey, look: it's already gone!

I think the argument is fairly well summed up here:
http://jadedconsumer.blogspot.com/2008/09/why-fannie-and-freddie-cannot-be-safely.html

Take care,
--Tex.