The Fannie Mae and Freddie Mac sink hole deepens

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZ7Vw70CckxU&pos=2

Fannie Mae will seek $15.3 billion in U.S. aid, bringing the total owed under a government lifeline to $76.2 billion, after its 10th consecutive quarterly loss.

For the full year, Fannie Mae’s loss widened to $74.4 billion from $59.8 billion in 2008.

The company’s shares, which peaked at $87.81 in December 2000, closed at 99 cents yesterday in New York Stock Exchange composite trading. The Treasury owns 79.9 percent of the company’s outstanding common stock.

Wow. Shares of Fannie Mae have dropped from a high of $88 to $1 in the last decade. That is some serious destruction of wealth. By contrast, the price of gold has more than quadrupled in the same decade. And with more bailouts and money printing looming, people have the gumption to tell me holding gold is risky?

Disclosure: long gold and silver.