Fannie and Freddie Crash

Diamond Foods (NASDAQ: DMND  ) hit a two-year high after second-quarter profits came in higher than expected, with the company also maintaining its full-year guidance. Last Friday, Coupons.com (NYSE: COUP  ) rose 88% on its first day of trading, with shares only pulling back slightly since then. Fannie Mae (NASDAQOTCBB: FNMA  ) and Freddie Mac (NASDAQOTCBB: FMCC  ) fell again today after the U.S. Senate Banking Committee announced plans to overhaul the mortgage market. And shares of apparel retailer Express (NYSE: EXPR  ) dropped after the company missed on fourth-quarter profits. Traffic to the company's stores was down, and the company also lowered guidance.

In this segment from Wednesday's Investor Beat, host Chris Hill and Motley Fool analysts Bryan White and Jason Moser look at five stocks making big moves on the market today.

Where to turn in retail when so many are getting crushed these days?
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.


Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 12, 2014, at 8:24 PM, PaulApp wrote:

    Many banks such as Bank of America and Wells Fargo have reduced their mortgage department. Some banks have only one loan officer working multiple branches! The immanence collapse of the U.S. economy is on the horizon from instability of the housing market!

  • Report this Comment On March 12, 2014, at 9:14 PM, PaulApp wrote:

    The collapse of the U.S. economy is imminent as it's being concocted by Warren Buffett and the Obama administration. They're timing it around 2016 of the election year!

  • Report this Comment On March 14, 2014, at 1:52 AM, maestrolindo wrote:

    Here's why they are trying to kill Fannie and Freddie. I think winding down Congress and replacing it with something more efficient is a better idea

    Bloomberg: ‘Plain and simple,’ Congress caused the mortgage crisis, not the banks. Mayor Michael Bloomberg said this morning that if there is anyone to blame for the mortgage crisis that led the collapse of the financial industry, it's not the "big banks," but Congress. Speaking at a business breakfast in midtown featuring Bloomberg and two former New York City mayors, Bloomberg was asked what he thought of the Occupy Wall Street protesters. "I hear your complaints," Bloomberg said. "Some of them are totally unfounded. It was not the banks that created the mortgage crisis. It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp. Now, I'm not saying I'm sure that was terrible policy, because a lot of those people who got homes still have them and they wouldn't have gotten them without that. "But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks to loan to everybody. And now we want to go vilify the banks because it's one target, it's easy to blame them and congress certainly isn't going to blame themselves. At the same time, Congress is trying to pressure banks to loosen their lending standards to make more loans. This is exactly the same speech they criticized them for."

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2873936, ~/Articles/ArticleHandler.aspx, 11/21/2014 2:39:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement