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In Wed's Wall Stret Journal, page A6 - doesn't give much insight as to what the Treasury is going to do, but if you're holding FNMA or Freddie, you might want to read it.

Treasury has committed $400 billion to them (200 billion each), and to date they have absorbed $112 billion. Some analysts say the agencies will not use the full $400 billion. Others say that Treasury should commit more just in case more is going to be needed by Freddie and Fannie. And the decision should be made before Dec 31...otherwise, it will take congressional approval to get more $$ for them.

Freddie and Fannie could go into recievership if they exhaust their reserves and congress does not bail them out next year.

Anyways...I've got FNMA zeros, 7,000 maturing in 2012, and another 7 maturing in 2026. They have had a nice run up in price since I bought them quite a few years ago. Current yield to maturities are quite low for both.

Since these are meant to be a portion of my portfolio that I didn't have to watch, I'll likely put them on the market tomorrow. They are in my Etrade account. On the first go round, I can only ask for a bid. I'm sure I'll get a ridiculous low-ball bid for them. After i refuse it, then the Etrade sight lets me put them up again but with my minimum offer that I'll accept. So I'll notch them down a little from present value (offer them for 93 instead of 95, 39 instead of 41), and then spend noo years lighting off my illegal fireworks instead of worrying if treasury pledged more money or not.

My personal feeling is that the goverment will not let Freddie or Fannie fail. But these instruments weren't meant to give me any type of afterthought, so I'm selling tomorrow...I expect to still get a nice price and some capital appreciation in excess of the already reported yearly interest.

Just my two cents if anyone is interested...
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