On occasion, I like to dabble in the stock market, for me playing the market isn’t that much different than playing the ponies. It’s pretty simple, risk and reward, you try to interpret all this historical data until your brain hurts and then you put your money down. And while my Twin Spires account balance has followed the Dow into bear territory the last few weeks, on occassion a stock play has one advantage you can never get on a horse, a government guarantee.
It’s Friday morning; I am off from work and watching all the doom and gloom about Fannie Mae and Freddie Mac on CNBC. While I don’t understand all the nuances of mortgage-backed securities, I do know that Fannie Mae and Freddie Mac have government charters and also have the implicit backing of the Federal government.
It seems the pitfalls of unfettered capitalism may be fine for those suckers who bought houses with no equity, assuming the market went nowhere but up. But with the financial system in a near meltdown, I was betting that George Bush would forget the basic tenets of capitalism and save the day at the taxpayers expense. Assured of that, I bought a couple of hundred shares of Fannie and Freddie (at the very bottom of the market, I might add). And as I suspected, Washington knowing that what’s good for Fannie and Freddie is good for the country, came to the rescue of the mismanaged giants.
The moral of the story, I doubled my money. If only Curlin had a government charter, betting the ponies would be so much more fun.



