I got out of my FNM...took a $3 gain, it's not worth it to hold that position one-sided when i can trade the spread intraday over and over.
That being the case, WILL NOT help their solvency Regardless as to whether the Fed assists or not, the future equity value will continue to weaken and, unfortunately, there will be no take out....= no value.
After having taken a better look, I believe chances that we are making a significant bottom are much higher than a continuation of the present trend.
maybe not zero but somewhere close to it. the equity holders of fnm and fre simply are not a concern of the govt. the govt is concerned about the major foreign (aka china) holders of fnm and fre debt.