Monday, March 2, 2009

Freddie Mac chief executive officer to resign

According to a press release from Freddie Mac, David Moffett, its chief executive officer, would be resigning by no later than March 13. The company expects to name an interim CEO before that time, and said the bard was working with the Federal Housing Finance Agency to name a successor.

I wonder what his package will be like. According to the article on Reuters, Freddie Mac will be submitting a request to the Treasury to draw an additional $30 billion to $35 billion under senior preferred stock purchase agreements. I guess Freddie Mac will just use part of that to pay for his severance package.

Currently, the stock is selling at 40 cents per share. The 52-week high was $34.22. I feel bad for the stockholders and all of the taxpayers who will shoulder the burden of this fiasco.

Will this nightmare ever come to an end? According to the oracle of Omaha, Warren Buffet, he said that the economy will be "in shambles" for the rest of this year. He said this in his annual letter to the shareholders in his company. Mr. Buffet is very honest and conservative in his opinions so I and a lot of other people listen to him. As I had said before, I'm not a finance expert or guru, but a lot of us saw the handwriting on the wall when things were going so great for us all. Unfortunately, we didn't heed the warnings of those who believed that the carnival ride was coming to an end. We continued to spend and finance our way through life with no cares in the world.

The ride is about to come to an abrupt end, ladies and gentlemen. As I had mentioned before, I think the economy will get worse if we do not heed the lessons of the past. Stop using credit cards and start saving. Help people in need. Bring back confidence to the economy. I believe that the next big economic bubble will be resources like water and energy. Look at those industries closely.

No comments:

Post a Comment