I don't know what this stuff means, but I'm sure it's all mental. Will the government offer them an imaginary bailout?
Fannie, Freddie Lose Nearly Half Their Value as Markets Open
Shares of Fannie Mae and Freddie Mac continued a week of freefall on Wall Street today, abruptly losing nearly half their value as investors ignored efforts by federal regulators to reassure about the financial health of the companies and focused instead on the risk that a federal bailout might wipe out the value of their stock.
Important pillars of the nation's housing market, Fannie and Freddie's ability to weather the current downturn in the real estate market has been called into doubt this week on several fronts. With the value of the companies' mortgage-related assets falling and the costs of borrowing on the rise, the Bush administration has begun studying what to do if either requires a federal bailout.
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