Is it curtains for FNM & FRE shareholders?

Barrons better be right. Heaven knows these entities have an incompetent management, but I still think its too premature to call for a shareholder equity wipe out.

Why would you want to stay invested in these two anyway? Get out now and curb your losses

They are fine for now. Won’t know until mid-2009 if they will have to broken up or not.

The government won’t let them fail. Blank bailout checks and unlimited credit lines to the fed are always nice.

Chuckrox8 Wrote: ------------------------------------------------------- > The government won’t let them fail. Blank bailout > checks and unlimited credit lines to the fed are > always nice. They will, however, allow the current shareholders to be wiped out.

And Bill Miller increased his stake in FRE just in time to watch it tank further.

They probably won’t need a bailout. However, they should take this opportunity to reform.

looks like the Fed will support the debt, but equity will (and should) be wiped out - looks like it will be the mother of all baill-outs - but just another in a long line of tax-payer funded Fed bailouts of private-owned businesses - just call it “Socialism with American Characteristics” (appologies to Deng Xiaoping)

null&nuller Wrote: ------------------------------------------------------- > looks like the Fed will support the debt, but > equity will (and should) be wiped out - looks like > it will be the mother of all baill-outs - but just > another in a long line of tax-payer funded Fed > bailouts of private-owned businesses > - just call it “Socialism with American > Characteristics” (appologies to Deng Xiaoping) How monochromatic. One way or another, the costs of the credit bubble are socialized. It’s either through far higher lending costs, which will eventually affect everybody, or through a bailout. Either way, it will be felt by all corners of the economy.