Dear Fannie and Freddie Shareholders,

You are screwed big time. I don't know what possessed you to continue to hold Fannie or Freddie common stock in recent weeks, when it was clear that Treasury Secretary Paulson was not going to protect the common stock in a bailout. You obviously weren't reading EPJ. I warned in July, that common stockholders in the two firms would be diluted down to near zero in the bailout. Maybe you were reading and following Dean Baker's useless advice.

Whatever the case, the worst still might be ahead of you. The Treasury has rights to a 79.9% stake in your companies for capital infusions of $1 billion each, but it is very likely that further capital infusions may be required which would dilute your pitiful stake even further.

More in the article. Comparison to the Chrysler bailout.