They're both insolvent but are being allowed to hide it, your stock is
little more than a call on them surviving this mess and somehow
miraculously reaching profitability again in the future. Levered 60:1
means that if their trillion dollar book is even 2% garbage they're
toast. What do you think the chances of that are with housing dropping
20, 30, 40% in some areas? Heres to hoping Paulson let's them fail
rather than socializing the losses. Even if the government bails them
out do you really think there's going to be any pie left once the
bondholders take their slices?

Realistically, we can't afford another war.  We are already stretched
too thin with Iraq and Afghanistan.  Unless we call up all our
reserves or enact a draft which would be wildly unpopular, it can't be
done.

Plus, Russia can't enter a war with the US with out getting most of
Europe involved (Read NATO Article 5), and vice versa.  They don't
have a war machine strong enough to engage all their fronts in Europe
and  invade/attack the US.  As booming as Russia's Oil has been, they
still have soviet era war machinery, while the US and Europe have
constantly been upgrading.  If there are smart, they will be like
china, stay out of other people business, and beat the capitalist at
their own game.

So stop watching CNN/Fox News and pay more attention to those
tickers  :)

This will take time to clear up. The same hedgies will go long once
they cover. Even Greenspan said the housing mess would be over mid
2009. FNM and FRE already have raised their fees and they're selling
bonds every week. If they had any problems sellign bonds the bond
rates would go up. But their bonds are selling just a bit over
treasury rates. That tells me that their are still buyers and the
buyers have already discounted these hedgies rumors. The hedgies are
just trying to scare the public. The smart money is ignoring them.