ohreally

Fannie and Freddie Shareholders Run for the Exit

Someone wrote "Whisper On The Wind:
Is it possible that analysts said that FNM/FRE would go to zero because that is what they actually believed will happen and it is their job to report their findings? Just a thought... "

It is not their job to simply report findings. It is there job to move the price of stocks and to intensify periods of euphoria and despair. Time and again I have seen analyst consensus produce insanely optimistic predictions at the top ($200brl oil, dow 35k) and hopeless despair at the bottom (paraphrase: Increase in CA home sales will not save you,"No recovery seen out to the far horizon, etc).

Where the analysts are at their absolute worst (or best depending on how you see their job function) is in their invariable counter trend friction after a top or bottom has been put in. Here we see commodities analysts lining people up to buy oil and corn contracts when the commodities bull has been slain. And we will surely see them talking down the beginnings of the inveitable recovery in financials.