In spite of taxpayers being soaked to the tune of $98 billion to keep the two government-sponsored lenders afloat, leading bank analysts Keefe, Bruyette & Woods (KBW) have downgraded their target price on each from $1.00/share to $0.00/share. That's right, zero!
Fannie and Freddie account for 68% of all mortgage loans generated to date in 2009. Translation: the Feds are still pushing people to take mortgages they can't afford; the Feds' two sponsored lenders, with preferential access to capital, are sitting on great, steaming heaps of toxic paper; the Feds and their lapdog press will somehow find a way to scapegoat the private sector when the government's own scheme comes tumbling down (again).
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