Watch for a Builder Rebound

From thestreet.com 9/8/08

When I heard that Treasury Secretary Henry Paulson, Fed Chairman Ben Bernanke and the two CEOs of Fannie Mae (FNM - Cramer's Take - Stockpickr) and Freddie Mac (FRE - Cramer's Take - Stockpickr) were meeting this weekend to discuss a rescue package for the mortgage-financing giants, I wasn't sure how the market would react.
That is until I heard Pimco's Bill Gross talk about the way the feds might backstop the two. He would be the guy to listen to with regard to where money and influence might be applied. His assessment was right on, and the market is certainly applauding the outcome. As you are no doubt aware by now, the U.S. government will take over Fannie and Freddie under a conservatorship plan and receive senior preferred stock. This investment implies the full support of the U.S. government and should strengthen our housing market's shaky legs. .......
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