Poole Says Freddie and Fannie Insolvent

I’ve reported for about 18 months now the two GSEs, Fannie Mae and Freddie Mac are both severely over leveraged. Now I have a former Federal Reserve bank president agreeing with me calling both companies “insolvent”.

William Poole, said in a Bloomberg report,

“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.”

Ouch!

I simply can’t resist saying, “I told you so…”

Watch the video below for the whole story…

Good Luck!

UPDATE: July 11, 2008 10:22 MST

It looks like this story is getting a lot of press and now the Administration is telling us “no bailout”. On that news, the market is responding off the lows at the open.

I should have liquidated my shorts at the open. I quessed right back in Aug of 2006 so I’ll be happy with my 71.26% and 57.765% annual rates of return (see below)…haha.

The story continues below in a “breaking news” video…

Author: Rob K. Blake
Published July 10, 2008

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