It finally happened, government is all but takes over Fannie May and Freddie Mac. Shareholders are wiped out, government will inject liquidity, take over the management and gradually unwind the investments until the entities dissolve.
It was expected, Fannie and Freddie could not survive by themselves. This may mark the end of banking crisis of 2008, a definitive bottom and a start of recovery. Why? Because there is nothing else to fail. When there is nothing els to go down, the only way to go is up.