MGIC Leads Mortgage Insurer Rally as Geithner Aims to Curb FHA

MGIC Leads Mortgage Insurer Rally as Geithner Aims to Curb FHA

This is one news that most people could care a little less because it is harder for people to relate. However, mortgage insurers are companies pretty much insure other banks when their mortgages go bad. During the financial and real estate boom, these companies pretty much were printing out money.

However, during these years when tons of real estate business gone bad and losing money. All these mortgage insurance company had to pay up. I am interested in this sector because I was had really negative investment outlook on these so I shorted it. However it had a surge runup when either manipulation or what...so I did lose quite a bit of money last year.

Today the whole sector is running up for like 10%+, whoever bought the stock earlier must've made some nice money...I would stay away from the sector though, you will never know when you will lose money if you do buy into it.

I think it is another stock manipulation. Be careful if you like big ups and downs when you like trading...trading is not a fast ticket to getting rich.