I have been criticized regulators for not shutting down trading in insolvent stocks like Fannie Mae and Freddie mac.
When they announced they would finally do the required takeover, almost a year too late, I will bet that the details of the takeover of those companies. I guarantee the regulators will not do the right thing and take them over the same way as banks are taken over, by eliminating the common stock completely.
We know 9 percent of mortgages are bad and that Fannie and Freddie only have 3 percent capital.Therefore they are insolvent by 300 percent, and theit stock is worthless.
Watch the regulators do a takeover sufficiently complex that you and I do not dare buy the stock immediately, yet the Wall Street insiders will know the true value and will get even richer by having access to information that you and I don’t.
Put em all in jail.