I think that in 6 months, or less, Freddie and Fannie will be nationalized. The shareholders will be wiped out, but the taxpayer will be left holding the bag (i.e., the billions in paper guaranteed by these two monsters will essentially become part of the national debt, although Uncle Sam will resort to semantics and creative accounting to say otherwise).

The war on savers and the war on the dollar will keep going at full steam. There’s simply too much political pressure not to bail out FBs and FLs by inflating the problem away. And this will probably happen regardless of who takes office in January.