Fannie Mae (FNM) and Freddie Mac (FRE) were taken over, more or less by the US Government.  Markets overseas most definitely were anticipating a positive reaction here in the United States.  With S&P and NASDAQ futures up over 30 pts pre-market there was reckless buying overseas.  One thing to note, the highest percentage gains happen during Bear Markets.  We are in a bear market and it will take significant buying over a couple of weeks to turn our sinking ship around.

I do not view this as a good thing, in fact did the BSC help the market out?  It did not we eventually rolled back over into new lows.  Will this help us?  It will remain to be seen however the global slow down at this point is a bigger story than FNM and FRE bailout.  FNM and FRE should see their stocks trade well below thse levels as the US Government can buy up to 80% of Company shares at a market price below $1.  While not wiping on equity shareholders out, this is no favor by the US government.

The US taxpayer, mainly the middle class and upper echelon of taxpayers are going to foot this bill.  Not too mention the lack of mortgages being available as lending practices will continue to subside.  This is no the free markets at work, its called socialism when the Government takes over and this is not the direction we should be going in.