satguru

Freddie, Fannie: Debt-Ridden, But Their Bonds Are Worth Holding

I got rid of my Fannie bonds last week. I don't have any faith in the government's word. When I bought the bond initially I was told by my broker GSE meant Government Supported Entity. Now the tune is simply Government Sponsored Entity which is completely different. DO you really trust Ben and Hank? I certainly don't?
I also carry some Municipal Tax frees at over 4.5% guaranteed by Ambac - that stock has been soaring lately but the bond only fetches 88 cents on the dollar. Go figure? Can you trust anyone in the financial marketplace?