The Real Estate Rollercoaster
Posted by: Carleton Sheets in Wells Fargo, Real Estate Market, Positive Thinking, Indymac, Freddie Mac, Fannie Mae on Jul 16, 2008.
Did you hear? Wells Fargo & Co. (WFC) posted a better-than-expected earnings for the second quarter of 2008¾which rallied the U.S. stock market to a 25+ point gain? Although, I admit the fall of IndyMac put a damper on my enthusiasm, overall this is good news.
Up, down, positive, and negative news. The market is difficult to read. Will the Freddie Mac and Fannie Mae "scare" finally signal a vital call to action?
Analysts (and, I think, the general public) are constantly watching for the bottom of the free-fall we're in. And with Freddie Mac and Fannie Mae's (who are the insurers of a high percentage of mortgages currently in the market) stock plunging, then gaining, then dipping again, comes the watchful eye of the federal government. This may signal that we are approaching a turning point---not that it will be an easy or a quick journey back to better times.
I know that there are experts out there who believe that we've just skimmed the tip of the iceberg. And perhaps they are right. But I just can't help but feel some optimism. How about you?
