Fannie and Fred in Dire Straits

The most encouraging economic news I’ve heard in recent days is that if Fannie May and Freddie Mac essentially went bankrupt (which it sounds like they will by next Thur), the US economy will be dead – execution style. There will be no loans issued whatsoever. There will be no money for nothing. Compared to that, the “credit crunch” up to now has been pussy-footing around… the only remedy would (read:will) be to make these agencies “full” agencies of the federal government. Sound scary ? Keep watching for DOW 10,500 !

PS: It’s doubtful that the Feds would NOT save FM&FM. So is this a good time to buy the stock ?