Fannie Mae/Freddie Mac - Toast! Says Barrons

If you're wondering why the stock market is taking a nose dive today, Barrons reported the government is planning on Freddie Mac and Fannie Mae to not be able to raise enough capital.

`It is very, very likely to happen before the end of the third quarter,'' Ajay Rajadhyaksha, the head of fixed income strategy for Barclays Capital Inc., said in an interview. ``Without government help, we think there is very little chance of Freddie completing a significant capital raising

I guess that means the taxpayer is going to pay big time since our Congress passed a massive bail out plus the stockholders of the two GSEs are going to lose a part of their anatomy.

magic secret decoder ring: GSE - government sponsored enterprise

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