So what happens when Fannie and Freddie go to zero?

Bill Gross of Pimco thinks we’ll be finding out soon.

Lots of pension funds are (or were) heavily in them. Retirees could see pensions shrink if the funds that a big enough hit. Municipalities and other governmental entities are probably heavily invested too.

How is it that stocks that used to be considered ultra-safe and secure are now approaching being worthless? Greed and a studied and deliberate lack of governmental oversight are the obvious primary reasons.

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