Yesterday, end of day we bought FNM and FRE  — actually we blame it on our evil twin Karnak who does all the things the rational professor in us tells his student not to do.  Anyway Karnak felt that the government can’t sink these mortgage beauties and so the ambush perpetrated by that New York nonentity, Keefe, Bruyette, Woods represents a buying opportunity.

Anyway the amount of capital is so small that  if it went to zero we would only be mildly annoyed.

And, as everyone knows, Karnak like to play with fire.  So he also lit a match to UNG and sold it.

Many people have asked for a picture of Karnak.  Here it is: