Today the Freddie Mac and Fannie Mae's of the world are having big time trouble. I had purchased some Fannie Mae stock months ago went it got down to $28 a share because that was such a bargain. These government backed organizations are thought to be the last to fall in any mortgage downturn. But, this week we see that they've fallen from graces too. However, the government will most likely help them with at least a little bail out.
Today Fannie Mae opened around $7.50 a share. Horrible drop in price! Luckily, I hadn't purchased so much, but I know more than a few people that invested around $40,000 in that stock. Yikes! And thus we see the benefit of diversifying our portfolios.
As a result of this news...I made an extra trip to Costco to buy more food staples for my emergency supply. I happen to have a very stable job, but the food prices may jump even more drastically than they have in the past two months. Wheat and corn products value has gone way up and we will all enjoy this as a cost passed on to us.
Apparently, there continue to be more foreclosures this month as well. Entire neighborhoods falling culprit to intruders and robbers of house items - like toilets, sinks, etc? See, I knew all this a few months ago and finally just turned the tv off so I could have a break from all the turmoil around me. Now it sounds like I'd better be a little more aware.
I guess our spending is coming back to haunt us. Now is the time to get creative - and I'm not just talking about carpooling - but going after that Big Idea that Donnie Deutsch is always talking about on MSNBC. There's always something that benefits in recessions and depressions and I'm thinking that some of us should band together and figure out what "that" thing is.
Any ideas?
1 comment:
Indy Mac in Pasadena failed on Friday. Since Pasadena is only 30 minutes from my house, it shook me up. Of course I don't bank with them but it's still an eye-opener. I've always seen the wisdom in food storage and other preparations for disaster... but it's becoming increasingly more important to do so. The economy is frightening and I have to wonder if anyone besides me sees the signs and has started stocking up. Not panicking but making preparations for what may come.
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