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To: Oblomov who wrote (152742)	2/21/2002 9:04:29 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 436258

This commentary on FNM by the capitalstool guy is priceless! Mr. Potato Head? ROTFLMAO! capitalstool.com FRE and FNM were hit for another 3% today on high volume. FRE took out yesterday’s low. Now we are going to see some huge selling volume acceleration on these two, since the operators have managed to unload these stocks from the brokers and transfer them to little old ladies and other “balanced fund” type mutual funds who thought they were buying some kind of government guaranteed dividend stock. I suspect that the sellers of FRE and FNM include the likes of JP Morgan (JPM), Citibank (C), and Bank of America (BAC), who see the writing on the wall on the mortgage bubble, and have been shorting the stock as a hedge against their massive mortgage-backed securities. Su Keenan at Bloomberg put on a rare display of bearish bravery last night by interviewing Franklin “Mr. Potato Head” Raines, the CEO of Fannie Mae (FNM), questioning the company’s excessive $700 billion derivatives portfolio and its ability to manage credit and interest rate risk. Raines deflected all the hard questions by criticized The Wall Street Journal as having an “anti-housing bias”. Raines is going to have an anti-housing bias of his own when the foreclosures start to accelerate and his company is going to be the largest housing auctioneer in the world.