Who's next? The Fed will take Bear's paper, they'll take Lehman's "Freedom" paper, and they'll take Morgan Stanley's new repackaged paper, so now they'll take the GSE's paper on mortgages underwater.
Hoping that at a minimum, home, stock, and bank prices will quit going down.
The Fed had two days of speeches and talks, and Fannie and Freddie got crushed. Not the reaction they expected. So now, after the damage is done to their stock prices, the Fed tries to inject confidence after the fact, with their strong dollar, and strong Fannie mantra.
They'll need it for the pounding they're taking!
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