“Here is the quote, which was prominently showcased toward the top of the article, from the founder of a research firm: "Both [Freddie Mac and Fannie Mae] these companies are clearly going to be insolvent by the end of the year, but everyone knows that Congress will do anything to keep them afloat, because if Fannie and Freddie go under, the entire global financial system will melt down. These companies' earnings don't matter. Their accounting hardly matters. People buy the stock because they believe the federal government will bail them both out if things get really bad." See? Earnings don't matter. Accounting contortions don't matter. They are unofficially designated as "Too Big to Fail" by the United States government so they won't. Just like Bear Stearns, which got a government assisted bailout from JPMorgan Chase(JPM - Cramer's Take - Stockpickr). ”
