The government takeover of Fannie Mae and Freddie Mac will have far-reaching economic effects.  For example, hedge funds that bet against the two companies have already seen windfall profits as the stock prices of both companies plummeted over the weekend, while the financial institutions that invested in the nearly $5 trillion in mortgages and mortgage-backed securities that FNM and FRE guarantee can breathe a sigh of relief.  The government bailout should help avoid a global financial crisis - but it might not help all of the Real Estate Investment Trusts (REITs) that depend on loans from Fannie and Freddie to finance their growth.

REITs are corporations that pool investor capital to purchase either income property or mortgage loans.  An example of the former is Simon Property Group (NYSE:SPG), which owns strip malls and shopping centers throughout the United States.  The latter group includes companies like Annaly Capital

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North Dakota’s economy is mainly dependant on agriculture, 25% of its economic base to be more precise. Natural resources are the most valuable asset this state possesses. Consider the following key facts about North Dakota:1. It ranks number one nationally for its potential to produce wind power.2. The state also produces biofuels like ethanol and biodiesel.3. There are more than 160 certified organic farms in the state.4. North Dakota lowered its corporate income tax beginning January 1, 2007. North Dakota corporate taxable income percentages vary from 2.6 to 6.5%.5. The state individual income tax varies from 2.1% to 5.5%.6. North Dakota allows a corporate tax exemption of up to 5 years for new or expanding technology based businesses.7. North Dakota is one of the safest states in the country.8. North Dakota produces about 2.7% ...

My weekly stock pick comes from a play on China. I love the China growth story just as much as anyone, but when the trader in me sees fear and greed going on in the markets I take notice. I see greed on the following stock near term as I will explain below. I do consider this pick a buy longer term, but near term, I’m looking for it to sell off before major buying support comes in for longer term investors.

Short Sell: Home Inns & Hotels. Ticker HMIN

HMIN Trade Setup

Sell-Stop Entry at $25.43 with Fairly Tight Stop-Loss at $26.50

Or Sell Limit Entry at $27.26 with Stop-Loss at $29.50

Another possible scenario could see prices of $29.23 to $30.20 before the possible correction I’m anticipating unfolds. Major support now sits at $23.59 to $22.80. A break of this level would indicate a sell signal. If the price holds at …