Wednesday, August 20, 2008

Fannie & Freddie: The Stock Market Will Go On

"Every night in my dreams
I see you, I feel you,
That is how I know you go on."
Today's action is worth noting.

As Fannie Mae and Freddie Mac take another giant step towards zero, the stock market has stabilized and is currently posting some respectable gains.

While FRE and FNM are down more than 15% a piece, but other financials are taking an opposite path. BAC and WB are chugging 3% higher, LEH is up more than 6%, and even C has posted a 1% gain.

As recently as Monday, declines in Fannie and Freddie took the whole market for a swoon. Are the recent "jitters" coming to an end?

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