Cramer: An Elegy for Fannie and Freddie

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At last, we have now found our own Resolution Trust Corporation for this era of overbuilding. In fact, we have two of them: Fannie Mae (FNM Quote) and Freddie Mac (FRE Quote). That's right, we know they are both out of capital, and unlike the ne'er-do-well banks -- almost all of which seem now slated to disappear in one giant bear-market orgy -- there are no saviors.

The dissolution of these two companies is the height of irony. President Bush made it his sub rosa mission to end the hegemony of these two Democrats-in-waiting companies. I don't even think he understood what the guarantee was or what they were supposed to do. That would take a lot of time to figure out. He probably just said, "We have banks, good banks, like Washington Mutual (WM Quote) and Countrywide; why do we need Fannie Mae, which just makes money for the Democrats?"

How To Play Fannie Options Now

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