Dan Schmeidler

While Citigroup Jumps on John Paulson's Investment, AIG Jumps on Anything

This is nothing more but a bubble formation in equities. And yes, (from a Fed's perspective) this sort of bubble in equities ain't so bad, considering all these other places where inflation could be creeping up. Since the government is backstopping/owning these equities (as opposed to NASDAQ2000) we are likely going to see this process (and this type of action in equities) prolonged. And (as (TraderMark points out) the rise in these equities is signaling that the Feds could potentially manage to keep their stranglehold on the markets for a very long time.

Fannie/Freddie Rally: A Product of Fed Intervention

The Feds are doing everything to keep FNM and FRE debt offerings alive and well. Heck, they even participate in the very purchase of its debt. At some point the Feds will have to look more closely at what exactly they are picking up at these offerings. I believe, they will also take clues from previous creditors coming to the table, hence future debt offerings.