Freddie Mac-No Politics (FMCC)

[Ecomike]

My best guess is they have somebody that is real short on the shares that needed a hand and that wants to drive the price down, or needs to bail on shorts that they were killed on last few days. So they come out with a position saying the stock is worthless to drive the price down, and they will probably get away with it, as the stock is a pure speculation as to what the government will someday do with their investment. I would think that the US government would want to see stocks like this (and AIG, C, etc) keep common investors interested and owning and bidding up the prices so that someday as things return to a more normal situation, the US government could slowly sell their holdings back to private investors. I just don't see the FED or treasury wiping out common stock holders any time soon here. If they do wipe them out, no one would want to trust the new company shares either. I think the FED and treasury will need to and want to prop up their share prices in order to have an exit strategy someday, but I could be wrong. Governments some times do irrational things.

Brokers would love this kinda news to drive trading volume higher too.