Volume Spike Investor

We are seeing yet another day of the murderous selling in Fannie Mae (FNM) and  Freddie Mac (FRE).  This is becoming a self fulfilling prophecy despite the GSE’s saying they are adequately capitalized.  At 9:42 AM EST we have seen already 19.2 million shares in FNM trade down 7% at $4.18 and 15.3 million FRE shares trade down 8% at $2.98.

If this was a dictatorship we’d say, “Get the guns, it’s time for a firing squad on someone.”

JON OGG

August 21, 2008