History...

...will be made at 11:00 a.m. Eastern time tomorrow.

I will not pretend to know what the Treasury/FED balance sheet implications are from the announcement that two of the major GSE's will be taken over by the Government. Nor do I know what will happen to the common/preferred equity holding and the eventual capital structure of the surviving entities.

My only point is this: Given the multitude of possibilities relating to Fannie and Freddie, has the market thought the present proposal to be the best or worst outcome?

FWIW, The Recapitulator believes this outcome is positive, and will calcify the status quo going forward...(a cynical echo: "just prior to the elections")

Good luck to all tomorrow.