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July 11, 2008

Fannie, Freddie and $150 drive Dow below 11,000

The weeklong worryfest over Fannie Mae and Freddie Mac continued today, while oil more than reversed its start-of-week decline and threatened $150/bbl. Result? The Dow is now below 11,000.

To be honest, I would not at all be surprised if it slides below 10,500 sometime later this year. I wouldn’t be hugely surprised if it goes below a flat 10.

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