Thursday, July 10, 2008

More Woes for Fannie and Freddie

Fannie Mae and Freddie Mac stock prices took a serious tumble today, as the market digested fears and rumors that the two mortgage giants are undercapitalized.

 photo credit, Duchessa at stock.xchng

Financial Times reports on Fannie & Freddie's woes. Fed Chairman Ben Bernanke tried to calm everyone's nerves by stating he feels that F & F are "well capitalized in a regulatory sense" but they should raise more capital. Which is it Bennie? Are F & F fine, or broke?

Ironically it was a politician who spoke most truthfully about the 2 F's today. Republican Presidential candidate Senator John McCain spoke on the campaign trail, saying the two companies "are vital... they will not fail... we cannot allow them to fail."

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