Chronicles Of Depression 2.0: #147

Key US mortgage lenders in shares meltdown

Shares of US mortgage finance giants Fannie Mae and Freddie Mac were in a freefall Friday on heightened concerns the trillion-dollar firms may face insolvency or a government takeover.

Freddie Mac plunged 48 percent to 4.10 dollars at the Wall Street open following a 22 percent slide on Thursday and Fannie Mae lost 46 percent to 7.07 dollars after a 14 percent drop in the prior session.

The latest action came amid a new report saying the government could put the finance giants in receivership, which would make the shares worthless.

The shares of the two firms have lost over 80 percent since the start of the year.

Emphasis added by me.

I’ll leave it to everyone else to parse out the ramifications of all of this.

I smell a Federal bailout coming.

Which will mean Paulson and Bernanke have zero credibility.

Explore posts in the same categories: C.O.A.T. - Belief, C.O.A.T. - Money, C.O.A.T. - Politics, C.O.A.T. - Scams, Depression 2.0

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