Benjamin Franklin Report: 30 Nov 07

An inevitable feature of the give and take in our economic system is the fact that we have to pay back whatever it is that we use. In simplistic terms, when you spend money, it has to come from somewhere, be it in the form of a trade item or currency. Or, if you really need money, you can spend your future earnings, which has gotten us into a bit of a bind recently, as I previously reported. In summary, the market is looking like it's rebounding nicely. Freddie Mac (NYSE:FRE) and Fannie Mae (NYSE:FNM) managed to issue some short-term debt items to raise enough capital to keep their operations afloat at least for another 90 days. (Wait, what is an S&L again? Why were they so controversial again?) The really big news item of the day, though, is this article. Countrywide Financial is dealing with the private ramifications of the ongoing credit crisis, although there is a whiff of hope in the air that is pushing Countrywide's stock (NYSE:CFC) up by more than 14% at press time. Citigroup (NYSE:C) is also benefiting from what some jackass business correspondent might call headwind generated in the markets by potential government intervention. I guess if Hope is not readily apparent, corporations are not forced to create their own by saddling their duly paid representative to take on their misguided liabilities.