Fannie Mae and Freddie Mac Make New Multi-Year Lows,Lose Half Their Value in the Last 6 Weeks

American's homegrown government sponsored housing entities took it on the chin today.Fannie Mae and Freddie Mac both gapped down today losing 50% of their value in just 6 weeks.Those in Congress who want Fannie and Freddie to buy mortgages greater than $417,000 saw their dream fade today.Freddie may have to raise new capital to stay in business.The bogus accounting numbers and the housing market finally caught up to these government sponsored entities.Promoting homeownership with 4% down payments sure looks laughable now.Check out the monthly chart on Fannie Mae,that's a 10 Year low.What's interesting is Fannie Mae stock peaked in December of 2000 never taking out the high of 89.44.Fannie Mae didn't participate in the big run up many housing stocks made between 2000 and 2005.I guess Fannie was the first warning sign that something was wrong in housing way back in December of 2000.