Hiding Under the Pillow

Market pundits are asking the big question, why are Hank Paulson and the Treasury Dept essentially doing nothing about Fannie Mae and Freddie Mac.  Our take is that they hope they can hide until the next administration starts,  in the meantime Goldman Sachs can build short positions.

In this kind of environment, bad news everywhere, majority of investors looking for a bottom,  and traders pushing from the short side every morning, the market will eventually snap up.  Aggressive investors may want to be buyers early this morning as the short term pessimism is running high as we start.

8:00 AM CDT

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