Fannie and Freddie Melt Down

[razorback2000]

The stock of Fannie (FNM) is down -30%. There are rumors that the CEO of FNM is headed over to the Treasury for some 'discussions.'
this is a shock that the US stock market (currently up on the day) is simply shrugging its shoulders at the complete capital destruction of the largest financial company in the world.
 
and  further more shocked that the US dollar is holding up. The foreign central banks feel a bit trapped, and that they have to support the dollar, but sooner or later it is going to sink in; the US fiscal deficit is about to get a whole lot worse due to the taking-on of $5 trillion of FNM and FRE mortgage debt. Both the fact of the blow-up and the apparent market responses to this are simply shocking to me.


Free markets? No, not any more. We now have socialized markets, and we got there without any sort of serious discussion by Congress. Note also that, even as recently as a week ago, Hank Paulson was still (publicly) proclaiming that it was "very unlikely" that FNM or FRE would require any public money. Either our leadership is fantastically out of touch with reality, or it thinks nothing of telling lies to the public. Of the two, which is worse?

source : http://chrismartenson.com/fannie-and-freddie-melt-down