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.
More on this topic
(What's this?)
How the Once-Respected Fannie Mae and Freddie Mac Helped Fuel the U.S. Real Estate Bubble
(Money Morning, 7/30/09)
He's Shown Me
(Financial Armageddon, 9/3/09)
No Denying This Reality
(Financial Armageddon, 8/17/09)
Why Ben Bernanke’s Incomplete ‘Exit Strategy’ Could Lead to a Decade-Long Downturn
(Money Morning, 7/30/09)
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Mike– can you comment on the SEC ruling regarding short selling of fannie and freddie and other institutions listed in the ‘fine print’ and what impact this is going to have?