Did you maybe think it was too good to be true, financial institutions finally lead the way on pulling the stock market back up? You are right! Our government has again decided to intervene in the normal functioning of the stock market to try to help Fannie Mae and Freddie Mac from collapsing without nationalizing them. The consequence would be the U.S. Treasury bills and savings bonds losing their AAA credit rating.
The Securities and Exchange Commission issued a new rule tightening short selling rules for 19 financial firms, including mortgage giants
Fannie Mae and
Freddie Mac, by requiring traders to "pre-borrow" stock before initiating a so-called short sale. The SEC said it had concluded "there now exists a substantial threat of sudden and excessive fluctuations of securities prices generally" that could affect orderly markets. This is what caused the stock market to rally on Friday. Other financial institutions that have been having a bad time, but did not make the SEC's favored list are crying fowl. Only 19 institutions are currently being protected in this plan, too bad for all the other struggling institutions. Please read this article to get all the details:
http://online.wsj.com/article/SB121642263809866665.html?mod=hpp_us_whats_news&apl=y&r=227037
This fix will only hold temporarily. Freddie Mac and Fannie Mae are not out of the wood by any stretch of the imagination.
Gold has gone up over 40%, Silver is up over to 50% in the last 52 weeks while all the major mutual funds are posting losses. Trade your losers for a winner! You may rollover IRA, SEP, and 401K accounts into precious metals as well as take them home with you.
If you are interested in learning about diversifying your portfolio with precious metals call
Tamara 303-771-5825 at Golden IRA's & Investments, Inc. in Denver, Colorado. I love to educate others about protecting their accumulated wealth. You may also visit
www.goldeniras.com to learn more.