More Pain

On Thursday evening I predicted 30-50% further decline in these two walking wounded. By 8am the next morning we were 50% lower on both. It gets worse. The Times is reporting a potential $15 billion funding from the Fed, possibly as early as Monday morning. If it comes to fruition, and based on the current market caps of the two companies, the shares could drop another 60-70% based on the mind boggling dilution of it all. The taxpayers get screwed royally under this scenario and the FNM and FRE shareholders get what’s on a Christmas tree—balls.

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