And when the housing market does recover, who else is in a better position then FRE and FNM? No one. These two will dominate. And if you thought that the escalating stock price at the last 40 mins today was something, wait until 2010 and watch both surpass that exponentially.
I went long at 3.29 a while back. Now I am short. You may get a gap tomorrow but have you looked seriously at the amount of debt they are carrying. Have you looked at how long until they are profitable? Perhaps not until 2010! We are talking 5 or 6 Q's. That is a long time. Oil is going down...but it will go back up.