wall street was spooked by freddie and fannie, page-2

Jim Sinclair’s Commentary

This is primarily from OTC derivatives. Believe me, I know.
Did I hear someone say that Fanny May and Freddie Mac are going to bail out sub prime borrowers? How? With an OTC derivative?
http://www.jsmineset.com/home.asp

Losses worsen at US mortgage giant Freddie Mac

WASHINGTON (AFP) Freddie Mac, one of the biggest players in the troubled US mortgage sector, revealed worse-than- expected losses of 2.0 billion dollars Tuesday and warned t will "take time" for market prospects to recover.

The mortgage financing giant said its investment portfolio ad been hit by the turmoil enveloping America's housing arket, especially falling home values and tightening cedit markets.

Freddie Mac, which is headquartered just outside Wshington, said its losses more than doubled during the third quarter ended September compared with a loss of 715 million dollars during the same period of 2006.

That equated to a loss of 3.29 dollars per share for the quarter against 1.17 dollars a year earlier.

Full article at http://afp.google.com/article/ALeqM5g7fT5bhZgOKJf5OcVnO6Az9NVSWw