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FNMA And FMCC Tread Water As Another Government Bailout Is Needed

Published 02/14/2018, 10:48 PM
Updated 07/09/2023, 06:31 AM

Another government bailout ($3.7 Billion) is needed to keep Fannie Mae's net worth from entering negative territory after reporting a 4Q net loss of $6.5 Billion, as described in this Bloomberg article.

Both Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) remain near their lows post-2008/09 financial crisis, as shown on the following monthly and daily charts.

The momentum indicator is below zero on both timeframes on all four charts...potentially hinting at, as yet, unrevealed underlying risks and further weakness ahead.

These are two more financial instruments to monitor, in addition to those I've mentioned recently here and here, for clues on equity weakness.

FNMA Monthly Chart

FNMA Daily Chart
FMCC Monthly Chart
FMCC Daily Chart

Latest comments

If so only because the Government is taking all of their earnings from them, not sure why they still are required to give the Government everything they make, They’ve already paid back the government double of what they borrowed. Why isn’t the Government just leave them alone and let them run themselves like every other Financial Institution in the USA??? Please answer this question that’s all I want to know. Thank you.
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