FOX Translator
No data currently available.
No data currently available.
Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.
What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)
So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.
Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.
Home / Markets / Industries / Government
Thursday, July 24, 2008
Fannie and Freddie Still in the Political Mix
FOXBusiness
Fannie Mae and Freddie Mac are pulling out of the upcoming political conventions but still paying for big budget booze bashes to lobby politicians.
FOX Business correspondent Adam Shapiro broke the news that the two mortgage giants, who are about to receive blank-check-taxpayer-backing through the U.S. Treasury, still plan to spend an undisclosed amount of money on parties to wine and dine Washington bigwigs when the Democrats meet in Denver and the Republicans meet in Minneapolis for their political conventions.
A Fannie Mae (FNM) spokesperson told Shapiro, “We will no longer have a role in the Democrat or Republican convention events including the housing industry reception. We will fulfill financial obligations that were made previously but we will not make any additional commitments going forward.”
Doug Duvall, a spokesman for Freddie Mac (FRE) said, “We committed to sponsor these events a year ago. Freddie Mac will not have a presence at the conventions.”
Shapiro asked Duvall how much Freddie Mac was spending to lobby politicians at the political party parties to which Duvall responded, “We won’t discuss that, why should we?”
The parties are important meetings according to other sponsors like the National Association of Realtors and the National Association of Home Builders.
The Independent Community Bankers of America [ICBA], which is also a sponsor, issued a statement saying “Homeownership is something that should be celebrated in America. What better venues to highlight the benefits of homeownership than the respective national party conventions.”
Shapiro asked the ICBA spokesman if that’s the case then why not invite all 300 million Americans to the party instead of the 400 select politicians and political party representatives who received invitations.
The ICBA has not responded to that question.
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
FOX Business Tools
Sponsored By
