A publicly traded corporation announces a $2.2 billion quarterly loss, a dividend cut and warns that steeper losses are sure to come. One might expect such a company’s stock to go down on such dire news. But not Fannie Mae! On the very day Fannie revealed nothing but bad performance news to investors, its stock went up 9% to $30.81. How is this possible? We’ll give you a hint: big government market intervention is involved. The New York Times explains: “Their optimism stemmed from the belief that Fannie Mae is …
