Counting to Three
After Enron, Tyco, and other companies we would have thought that these public companies would take a page from their book and get their accounting correct. Not the case for Fannie Mae (FNM) as they are now facing fines up to $400 million since they decided to cook the books for $11 billion. I imagine there will be a nice investigation along with the fall out of several other companies. Investors will see this and they will again be uncomfortable with their investments in the New York Stock Exchange, NASDAQ, and other markets. I don’t believe the Dow will be hitting highs as we all thought.
Usually during situations like this hedge funds expose the problem to the public and then many look down at them. Remember it was the hedge funds who help put questions in the minds of many during the Enron bomb. Look for hedge funds to make the news and they may be on the other side shorting stocks.
