"Thank you for setting up this web site and I'm sure I'll be your new biggest fan." -Joan
Read More Testimonials»

On the Finances Blog

Bankruptcy: The Power of the Clean Slate

It doesn’t take many clicks online to find writing and advice on how to shape up your finances, even First30Days has a great financial advice section found here. There are...

Read More About Bankruptcy: The Power of the Clean Slate»

Our Smart Investing Experts

Jason Kelly

Jason Kelly

Author of The Neatest Little Guide to Stock Market Investing

Shared by First30Days View Profile»
Lauren Young

Lauren Young

Journalist and department editor at BusinessWeek

Shared by First30Days View Profile»
Stephen Gandel

Stephen Gandel

Money magazine senior writer

Shared by First30Days View Profile»

Meet all of our Finances Experts»

News

The latest news on this change — carefully culled from the world wide web by our change agents. They do the surfing, so you don't have to!

Freddie Mac Worse Than Feared

Freddie Mac, the mortgage giant, posted a loss more than three times what Wall Street predicted as more homeowners fell behind on payments. So what does this mean for those of you holding stock?

To preserve what little capital the company has left, they’re dropping dividends from 25 cents a share to a little less than 5 cents a share, on top of selling at least $5.5 billion in stock. This move sufficiently waters down the dividends for current stockholders while increasing Freddie’s balance sheets with the sale of more stocks.

The quarterly loss for common stockholders was $1.5 billion, as opposed to the same quarter last year earning $632 million in profits. The preferred stock-holders lost $821 million compared to a profit of $729 million a year ago. Freddie Mac is struggling to make ends meet and recover from the losses, but as more and more people fall behind on their overpriced mortgages, the company may be in serious trouble.

These stark numbers illustrate yet another reason to build a diverse stock portfolio. In times like these, having your money invested wisely in a few key areas will keep a larger loss like this from setting you too far back in your investing goals. Do you think the homeowner’s relief that Bush finally signed will do anything to help this situation? Do you own stock in Freddie Mac or Fannie May? Tell us how your portfolio is faring.  [USA Today]

Posted: 8/6/08