From the new York Post:
"September 29, 2005 -- The accounting disaster at Fannie Mae, the giant mortgage guarantor already in the midst of a multiyear investigation of financial shenanigans, appears to be much worse than previously thought.
Investigators now say that the $11 billion estimate of Fannie Mae's accounting gimmicks appears to be a best-case scenario.
The company ran into trouble because it overvalued derivative losses and the value of hedges on its $760 billion portfolio.
A Dow Jones News report citing the expanding problems knocked Fannie's stock down $4.99, or 10.7 percent, to $41.71..."
Hmmmm, a hole bigger than 11 billion and stocks down 41% this year alone, never mind 10% in a day.
I reckon that's another one of my criteria for a housing crash well and truly fulfilled. I can practically hear the credit spigots being welded shut.
The game's afoot...
FoFP