Federal Mational Mortgage Assctn Fnni Me FNMA 6.67% and Federal Home Loan Mortgage Corp FMCC 7.15% were both trading higher by more than 40 percent on Wednesday after President-elect Donald Trump’s recently-appointed Treasure Secretary Steven Mnuchin said the administration will make sure Fannie Mae and Freddie Mac are no longer owned by the government.

Pre-Bailout

Even prior to the government takeover, Fannie and Freddie were classified as Government-Sponsored Enterprises, or GSEs.

GSEs are privately-held companies that are created by the U.S. government to reduce the cost of capital in certain markets. GSEs are implicitly backed by the government, which instills confidence in their investors. In addition to Fannie and Freddie, other GSEs include Federal Home Loan Bank, Federal Farm Credit Bank and Resolution Funding Corporation.

Post-Bailout

The government’s bailout and subsequent takeover of Fannie and Freddie following the mortgage crisis was outside the typical scope of government involvement when it comes to GSEs. Fannie and Freddie have been delisted…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!