The genuises at Citigroup and Lehman Brothers downgraded Fannie Mae and Freddie Mac this morning.
What makes this particularly egregious is not that this downgrade is so obvious, it's that Citigroup had a "buy" rating on both companies. Lehman rated them "overweight."
That's like saying it might not be a good idea to buy a ticket on the Titantic's next voyage -- after she had already sunk! "Tulips? Yeah, they look like a pretty good investment to us, duh..."
Not everyone on Wall Street was so bloody stupid. Merrill Lynch, for one, was at least neutral. That's a defendable position. Neutral means, "We'll see." But a buy is simply inexusable, and a serious blow to both outfit's already reduced credibility.