on a related note, famed fund manager Bill Miller, Freddie's second largest shareholder, has been put on suicide watch this morning.
This guy is pure comedy, I saw an interview from him a while ago bragging about his discipline to sell Suncor in 04 or 05 because of an canandian tax change, that stock soared while his dream pick C was crushed. I bet he will blame the f-f debacle on short-sellers
only the fact that people are quickly realising that they are insolvent and more importantly a bail out does not include share holders. the more obvious news is the nyt article. believe me by sunday the federal bank of fannie and freddie usa will have been set up
40% and 48%, respectively. I think I can hear them gasping for air. What are the odds that a government bailout lifejacket will be thrown shortly.?
im going for sunday night. will be the usual fed/treasury/white house breakfast on the lawn. bush will obviously be out of his depth so he will let bernanke and paulson come up with some well worded political bullshit statement that the us is fighting the war on mortgage terror with financial special forces. late sunday evening will be the annoucement with the markets ready to roar in approval as the taxpayer picks up double the published debt and losses.
The market seem to be fine with a 50% decline on these stocks, I smell a short squeeze on the next few days