After being one of the first websites/blogs to spot the FNM/FRE takeover by Uncle Sam here, I’ve decided to let others write about the bailout specifics. Suffice it to say, this is nothing more than an attempt to get investors (including Sovereign Wealth funds) to take their eye off the ball. No doubt there will be a deluge of opinions, so instead, let’s discuss our next move.

First, even at the levels stocks are going to open this morning, the current wide trading range remains intact. Long time readers know I am no fan of trading financials from the long side, and this has served well. Many traders even bought FNM and FRE on the prospects of a bailout, but these stocks (common shares for sure) are set to open near worthless. This illustrates perfectly the reason I stay in the same …