George Bush promised to do his best. And, that was the main message in his speech on the troubles in the sub-prime market. The address was not even long on promises. Congress will work on legislation to help home owners. Freddie Mac and Fannie Mae may help. And, anyone who committed fraud while making a home loan will be hunted down like a dog.
The best evidence for the lack of enthusiasm over Mr. Bush’s talk is that mortgage companies and homebuilders are trading at their intraday lows. Beazer (BZH), which was as high as $11.04 today now trades at $11.07, up 1.8%. Countrywide Financial (CFC), which hit $20.95, is now up only .4% at $18.73.
Anyone who bought at these stocks at the open is taking a beating.
Douglas A. McIntyre