Here we Go again,

If you thought that there were going to be problems when the credit crises hit the banking institutions went belly up just wait till the market finally faces the reality that FreddyMack and FannyMay are insolvant. Jus as I said over two years ago after reading a small article, these two GOVERNMENT WELFARE PROJECTS are poorly run and they are set to fall. The problem is they are tied to almost half of all the mortgages in the country and millions of families will be effected when it happens. Investments in these two socialist projects needs to to abandoned. If I had money in them as an investment, I would get it out ( I never would have put a dime in in the first place just on moral grounds) They are insolvent by any ones financial reckoning and they have been for quite some time. if the Government and the FED had not been dumping all their free FRN's in there in the first place the 1970 project would have gone belly up long ago. It is wrong for the government to be a LOAN officer. It is UNconstitutional for them to Charter companies and get involved in the "market". Unless of course we are not in America anymore and are in reality Amerika.
Gold is way UP.. they are blaming Iran's missile tests, however after looking at bloomberg's story on Fanny and Freddy you will see the real reason....

Fannie, Freddie Tumble on Bailout Concern, UBS Cut (Update1)
By Dawn Kopecki and Shannon D. Harrington
July 10 (Bloomberg) -- Fannie Mae and Freddie Mac, the two biggest providers of financing for U.S. home loans, tumbled to the lowest in 17 years in New York trading after a former Federal Reserve president said the companies may need a government bailout.
Fannie Mae tumbled as much as 20 percent and Freddie Mac slumped as much as 29 percent in New York Stock Exchange composite trading after UBS AG analysts said the company creates ``challenges'' for the company's plans to raise $5.5 billion, UBS analysts said in a report today.
Chances are increasing that the U.S. will bail out Fannie Mae and Freddie Mac because they don't have enough capital to weather the worst housing slump since the Great Depression, former St. Louis Federal Reserve President William Poole said in an interview. Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules, he said. The fair value of Fannie Mae's assets fell 66 percent to $12.2 billion, data provided by the Washington- based company show, and may be negative next quarter, Poole said.
``Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer,'' Poole, 71, who left the Fed in March, said in the interview yesterday.
Fair value accounting measures a company's net worth if it had to liquidate all of its assets to repay liabilities. Fannie Mae and Freddie Mac, both of whom have the implicit backing of the government, make money by borrowing in the bond market and reinvesting the proceeds in higher-yielding mortgages and securities backed by home loans.
`Inflection' Point
Fannie Mae slumped $2.70 to $12.61 at 10:19 a.m., extending declines for the year to 69 percent. Freddie Mac tumbled $2.96 to $7.30, taking its 2008 slide to 78 percent. UBS AG analysts led by Eric Wasserstrom in New York increased their estimates for losses at Freddie Mac and cut their price target for the stock to $10 from $28 after meeting with Freddie Mac's chief financial officer Anthony Piszel and controller David Kellerman, according to a report today.
Fannie Mae and Freddie Mac have raised a combined $20 billion since December to cover losses of more than $11 billion generated since the credit crisis began last year. Freddie Mac has yet to raise a planned $5.5 billion, scheduled for mid-year. ....."

now you know the reason Paulson went on in his speech the other day about there needing to be a way for the " biggest institutions " to be able to go belly up.... The biggest institutions are GOING BELLY UP.