How to invest on upcoming mortgage bailout?
July 11th, 2009 by Lenny
I’ve read of investors that have made money "betting" that a certain company would be bailed out. I want to do something similar, I want to "bet" that the mortgage crisis will be bailed out by the govt. How can I go about investing in this belief?
Related posts:
- How do/did banks make money selling packaged up mortgages to investors?
- To all you homeowners who are current: what are your thoughts on this mortgage bailout?
- Could the mortgage bailout money be given to mortgage holders?
- If people overwhelmingly hate the mortgage bailout, why are they still forcing it on us?
- what lenders are eligible for the Obama Mortgage Bailout plan?
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You have to wait until a company is almost certain to go bankrupt. And when its price falls close to zero. Then invest your money in it.
BSC fell to $2 and then recovered to $10 after government bailout. That’s a 500% possible profit in a couple of days.
But you have to be really sure the government will bail out the company. Or else you will loose your whole investment, when the company goes bankrupt.