This weekend the government has taken control over Fannie Mae (”Phoney”) and Freddie Mac (”Fraudy”), with your tax dollars.  The markets are behaving as if all the financial turmoil and the mortgage meltdown has ended abruptly.  Both major averages are up significantly - the Dow Jones up over 2% and the S&P 500 up ove 1.5%.  But according to the volatility index (^VIX), which is also going up along with the market (NOT NORMAL), it may be wise to remain cautious, or hedge your positions accordingly.

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