ge corp the main focus for the dow tomorrow, page-4

That's all caused by GE's finance division which I expect is completely up the duff now with everyone defaulting on their loans! But wait - there's more....

Fanny and Fredie's shares are dropping 20-30% per day! Oh boy! If these two go under then there will be a mad rush by mum's and dad's to withdraw funds from mortgage investment firms (building societies) making them insolvent too. If the fed bails out Fredie and Fanny then what about all the other lenders and firms about to go kaput? Maybe the fed should change its name to "The Sub-Prime Bank of America".

And who is going to want Fredie and Fanny's home loans when the assets are worth only 60% of the loans due to the housing slump. More risk means higher interest. So are the new mortgage lenders going to charge the mums and dads who own these loans more interest causing them to default too! etc etc etc...

Looks to me like Fanny and Fredie are about to give us another triple dose of sub-prime medicine! Yuck!

Capital Fears Sink Fannie and Freddie