What happens to Fannie Mae/Freddie Mac?
Anyone care to guess how this plays out?
Two Things seem painfully obvious.
1. Neither can survive on thier own
2. Failure of either is not an option
It also seems to me that a government bailout will go over like a lead ballon to taxpayers/voters and this is an election year. Not to mention all the mutual funds/institutions, etc who would see their stock go to zero. Yet, without FNM/FRE the real estate market would litteraly implode and thats not an over statement by any means.
If, and I emphasize IF, FRE cannot sell the $3 billion tomorrow this is going to come to a head rather quickly, imo. Also, just my opinion, but the fact they're maeeting on Sunday to dicuss Plan B tells me they're worried they can't place the paper.
I'm trying to talk myself out of shorting/buying puts on both these stocks with the intention of holding for zero. Someone stop me before I do something stupid:)