I was stunned to read the “Demand Strong for Freddie's Note Sale” article in the WSJ yesterday. It seems to now be taken for granted that Fannie and Freddie are to be fully nationalized, thus wiping out both common and preferred stockholders.In particular, read the part that says:“In addition, the announcement Wednesday of the Treasury Department's increase of its preferred-stock-purchase agreement to $200 billion from $100 billion bound the two companies closer to the government, she said. The measure is expected to ensure the companies' net worth stayed positive despite expected losses in the next few quarters. This relationship may be further cemented if the Office of Management and Budget decides to move Fannie and Freddie onto the federal budget at the end of this month.”1. This represents an expropriation of billions of dollars in common and preferred stockholders equity.2. This should gravely concern any stockholder in any company, but especially stockholders in the banking sector.3. This should gravely concern anyone with any property in the United States.Mark
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