Crikey! Market taking a chunk out of Fannie …

As the late, great “Crocodile Hunter” Steve Irwin might havesaid, “Crikey!” The market is taking a huge chunk out of Fannie Mae’s and Freddie Mac’s hides today amid ongoing fearsabout mortgage losses and potential, additional capital raisings.Shares of Fannie Mae were recently off 18%, while shares of Freddie Mac were down 21%. The spreads between yields onFannie and Freddie MBS and Treasuries are widening out again. And credit default swapson Fannie and Freddie debt are getting somewhat more costly. Good thing the creditcrisis has been contained or I might be worried.