more on "the start of a new trend?"

creditors rude awakening is looming?

http://www.bloomberg...6...5rWdY&pos=1

what we should be doing - however, from Dow Jones (email, dont have a link):

Fannie, Freddie Holders Protected

The U.S. Treasury reiterated its commitment to protecting investors who own the debt of mortgage-finance giants Fannie Mae (FNM) and Freddie Mac (FRE) on Friday, after comments from an influential lawmaker suggested that the companies' bonds might not be fully backed.

The Treasury was forced to take the unusual step after Rep. Barney Frank (D., Mass.) said Fannie and Freddie's bondholders shouldn't assume that they would be treated the same as investors in U.S. government bonds. Those comments threatened to undercut recent efforts by the Treasury to reassure markets that debt holders wouldn't suffer losses.

The government took control of Fannie and Freddie nearly 18 months ago and has taken extraordinary steps--injecting $127 billion into the companies and promising unlimited amounts of future aid-to make sure that investors continue see the companies as fully backed by the U.S. government.

one by one creditors will get hit. the longer it takes the more severe the overall hit will be...