Stocks staged a brief comeback on Friday after investors heard that Freddie and Fannie would be allowed to take advantage of the Fed’s discount window.
But the rally was short lived and ultimately Freddie and Fannie dragged down the Dow by triple digits.
Investors can’t help but wonder how much farther the two institutions might fall.
“I don’t know that Freddie and Fannie are going higher but I think with the policy shift out of Washington they’re probably done going down,” speculates Guy Adami on CNBC’s “Closing Bell.”
”If you’re short these stocks then you’ve had a great run but take money off the table and go away. To try and trade these stocks today is just a fool’s game,” he says
But Adami also thinks the distress has created some price displacement in other sectors. In other words other stocks are being dragged down that probably shouldn't be.