Time to cover your Fannie

All the cool kids are doing it. Suing Fannie Mae, that is. This latest class-action, quoth MarketWatch, comes from options traders who claim they were misled about the true state of Fannie's balance sheets. Gee, I wonder what could have given them that impression...

The Cranky Economist's mischievious side is tempted to joke that the fraud at least provided some downside risk for what were otherwise shamefully secure "investments." But that isn't really fair. At the end of the day, the rules is the rules, and you gotta play by 'em. Fannie's execs apparently didn't. See you in court.