I don’t understand why Freddie and Fanny’s stock prices are crashing today. I don’t understand why former Fed president Richard Poole is now calling Freddie and Fanny insolvent. I don’t understand why the Wall Street Journal is now reporting on how the government is coming up with contingency plans for what to do if Freddie and Fanny fail.
Why now of all times? What has changed? (H/T Naked Capitalism here and here) (H/T Calculated Risk)(H/T Felix Salmon)
Edit: Here is a YouTube clip to news anchors reacting the drop of Freddie’s stock in real time. It is funny hearing them stammer.