Looks like Fannie and Freddie will be nationalized this weekend. Look for a news release late Sunday / early Monday before the Asian markets open. What a fiasco. They better blow out all the common shareholders and give a major haircut to the prefferred and bond holders or I'm gonna be one pissed off American. Unfortunately, I think this may be the first of many bailouts. It will be interesting to see how the US dollar and treasuries do this week. Basically, we just flooded the treasury market with about $5 trillion more of government debt. Even though it was pretty much implied before, it's a done deal now. Not a good day to be a US taxpayer although readers of this blog already knew this was coming.
Nationalization of industries
That'll leave stains!
I can just see Ogre from Revenge of the Nerds now...
Bloomberg article
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