Archive for September, 2008

Where oh where did my little 401K go?

If you are like me, you have saved up a little money for a rainy day and parked it in a 401K or other suitable retirement account. We have been told for years that we need to be putting money aside every month so that we can live comfortably in retirement. Why, the stock market always increases in value over time so how can we go wrong?

Have you checked the value of your IRA recently? The financial meltdown of late is unmatched in its brutality and widespread damage since the great depression of 1929. Not since then has this country been so close to financial chaos. Between Wall Street melting down and the mortgage crisis, we small investors have been hammered. (more…)

Thursday, September 25th, 2008

Freddie Who?

In this mornings web edition of The New York Times, there was a great article about Freddie Mac and why it is in the news. For a good review and how it could affect you, read on.

Freddie Mac
FRE: NYSE; Financials/Consumer Financial Services

Freddie Mac, a publicly traded company that operates under a federal charter, is the nation’s second-largest mortgage buyer. Along with its larger rival, Fannie Mae, Freddie Mac was taken over by the federal government on Sept. 8, 2008, as it faced steepening losses, new questions about its accounting and a flight by investors.

Freddie Mac and Fannie Mae buy mortgages from lending institutions and then either holds them in investment portfolios or resells them as mortgage-backed securities to investors. The two companies play a vital role in providing financing for the housing markets. (more…)

Friday, September 12th, 2008