I WOULD NOT BE SHORT THESE TWO

Both of them would go bankrupt.Maybe not on Monday :) but it is inevitable.Any bounce should add some meat to the short.Along with C and GM,they are my favorite shorts.

I think the toughest thing is deciphering the potential government action/rescue in either of these names, which of course makes them a dangerous short

Looks like a good call patrick and I think your approach towards these names is a good one.

I am a registered stockbroker with 150ml under management. I would not short fre or fnm. Remember your dealing with a govt entity they play buy different rules!

well being a professional cmilie why dont you give us a few more facts on your non short decisions

i dont think these things will pop anytime soon, especially since FNM just came out asking for more money

looks like you were dead wrong on that one, they NEED it and it may be much more than we originally thought

Fannie and Freddie are both trading below $1. Why wouldn't it be safe to assume that they'll both, at some point, recover and increase in value?

because they are technically insolvent and only continue operating at the beneficence of the us government

At any time the government could decide that it now longer wants to allow FNM and FRE to operate as they do now and could even change the make up of the company, I would say stay away

Since no one has posted on this in a while I will. FNM and FRE are a pop and will blow through $2 next week and after the Jan. 20th inauguration will increase to $7 I see the light. I'm long on this shorters go ahead hit and run I need the BIG $$$$$!!!!!

why not the government bailouts have not proven they will work

On my opinion there are too many government whales owning FRE, FNM stocks, they won't let them go down..