Fannie and Freddie are in Great Shape...Not.

Friday, Fannie Mae and Freddie Mac were saying that they were in great shape with plenty of capital. By Sunday, the government had announced a bailout plan. Friday, Bernanke said that he had not discussed opening the discount window to Freddie and Fannie (like he already did with investment banks in order to bail them out of their decisions). Monday we find that he was...um...less than honest—okay, he was lying. He did open the window for them. These guys are desperate.