Why the Smart Money and Journalists Are Still Worried About the Banks

We trust by now you've seen the Freddie Mac and Fannie Mae news... So we're determined to stay true to form and only focus on the one story today that will put you ahead of the curve. That's why we think you need to read a story buried inside the Wall Street Journal today: "No End Yet to the Capital Punishment". The headline is, of course, a play on words and speaks to struggle some private banks are having with a lack of funds.

Here's why you care: We've repeatedly pointed to articles about banks on the government watch list for failure, most recently HERE and HERE. The Wall Street Journal is right to keep their eye on the ball, and so should you.

We thought we were done and then we saw this article on CNNMoney.com pointing out that many of these struggling banks actually hold Freddie and Fannie stock. In other words, banks already hanging on by their fingernails may have just gotten another left jab at their fiscal health. If you take less than five minutes and read the CNNMoney.com article and Wall Street Journal article like companion pieces - you'll understand this on an entirely different level.