Fannie Mae was trading at nearly $70 in early 2004 and, four years later, cratered to eighteen cents. What’s most remarkable to me is that there is a gap between trading that ended on September 5 2008 and the following Monday, September 8. That’s when the financial crisis popped from 3rd gear immediately to 5th, and it never looked back………until this week.
Incredibly, just yesterday, it almost perfectly closed the gap set oh-so-long ago, and it immediately reversed. With yesterday’s high at $5.44, that means Fannie Mae went up about thirty-fold from its crisis low.
And since only yesterday, the stock is down nearly 60% (ahem: !!!!!!!!) A quick glance at the minute bar chart indicates that maybe, just maybe, this is completely algorithm-controlled at this point, with computers sloshing prices like mad. I don’t get near stuff like this.
