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Is This the Next $100 Billion Financial Meltdown?

By Matt Koppenheffer and David Hanson - Apr 3, 2013 at 5:38PM

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Is this terrifyingly rapid growth a giant bubble waiting to burst?

At the end of 2009, mortgage REIT American Capital Agency (AGNC 1.83%) had around $5 billion in assets. Just three years later, at the end of 2012, that number has grown to approximately $100 billion. Is this insane growth sustainable, or is the bubble going to pop? In this video, Motley Fool financial analysts Matt Koppenheffer and David Hanson compare American Capital to some of the other big mortgage REITs and their growth over the same period, such as Annaly Capital (NLY 2.15%), and take a look at American Capital's track record, to tell us whether the company inspires confidence or trepidation.

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Stocks Mentioned

AGNC Investment Corp. Stock Quote
AGNC Investment Corp.
AGNC
$12.21 (1.83%) $0.22
Annaly Capital Management, Inc. Stock Quote
Annaly Capital Management, Inc.
NLY
$6.64 (2.15%) $0.14
Two Harbors Investment Corp. Stock Quote
Two Harbors Investment Corp.
TWO
$5.39 (2.47%) $0.13
ARMOUR Residential REIT, Inc. Stock Quote
ARMOUR Residential REIT, Inc.
ARR
$7.57 (0.67%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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