Fannie Mae and Freddie Mac are the big news today. Over this weekend they will, in effect, get nationalized and in the end the U.S. taxpayer will take responsibility for their losses.
China, Russia, Pimco and others who own F&F issued mortgage backed securities will not have to bear losses.
Current owners of preferred F&F stock will not have to bear losses either. Most of them are smaller U.S. banks and if these stocks would have been wiped out, many of them would have failed.
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