Little Pink Houses
Fannie Mae and Freddie Mac are no longer listed on the major stock exchanges. Fannie’s shares once sold for $84 per share – now it’s at 43 cents and Freddie was once at $73 – now it’s at 57 cents. Penny stocks. More than half of all the mortgages in the country are owned by Fannie and Freddie.
What will probably happen now is the Feds will (eventually) sell the assets to private buyers. Probably those who contributed the most in the last election.
Mexico and Russia
Mexico’s Carlos Slim, now the richest man in the world, added to his billions when the Mexican government put Telmex and Telnor on the auction block. Slim and a group of investors now get fees from more than 80% of the cell phones in Mexico.
Russian billionaire, Roman Abramovich, was politically connected to the right people (Boris Yeltsin) at the right time (perestroika). Abramovich and his partner were able to acquire controlling interest in Sibneft oil company. The $100 million he invested quickly turned into billions. Now his biggest worry is haggling over the cost of the largest yacht in the world. As they say, it’s not what you know, it’s who you know.
In the meantime, enjoy a blast from the past with John Mellencamp – Pink Houses:
And there’s winners and there’s losers
But they ain’t no big deal
‘Cause the simple man baby pays for the thrills, the bills,
the pills that kill