Michael Burry Warns Fannie Mae and Freddie Mac Could Become ‘Worthless’ as Trump-Era Gains Collapse Under Fresh Pressure
“The Big Short” investor Michael Burry warned that technical chart patterns for Federal National Mortgage Association (OTC: FNMA ) and Federal Home Loan Mortgage Corp. (OTC: FMCC ) predict “worthless stock” following recent price declines that erased gains made since Donald Trump ’s election. In a post on X, Burry disclosed making recent moves in both over-the-counter mortgage giant equities as market breadth narrows. Technical Breakdown and ‘Meme Juice’ Burry noted that both stocks recently completed a “giant head-and-shoulders-and-elbows top” pattern, signaling a severe technical breakdown. According to Burry, the equities are shedding previous speculative gains, writing that the stocks “are coming close to expelling that poison from their bodies” after taking on “meme juice.” “What that chart predicts, technically, is worthless stock,” he said. He added that “all that is left is the dominant hand to forcibly shove the shares off into the nether” as broader market attention remains concentrated in the AI trade. New X article. This past week I made a move in both Fannie Mae & Freddie Mac. Both stocks have retraced essentially all their gains since Trump’s election, and they put in
“The Big Short” investor Michael Burry warned that technical chart patterns for Federal National Mortgage Association (OTC: FNMA ) and Federal Home Loan Mortgage Corp. (OTC: FMCC ) predict “worthless stock” following recent price declines that erased gains made since Donald Trump ’s election. In a post on X, Burry disclosed making recent moves in both over-the-counter mortgage giant equities as market breadth narrows. Technical Breakdown and ‘Meme Juice’ Burry noted that both stocks recently completed a “giant head-and-shoulders-and-elbows top” pattern, signaling a severe technical breakdown.
” “What that chart predicts, technically, is worthless stock,” he said. He added that “all that is left is the dominant hand to forcibly shove the shares off into the nether” as broader market attention remains concentrated in the AI trade. New X article. This past week I made a move in both Fannie Mae & Freddie Mac.
Both stocks have retraced essentially all their gains since Trump’s election, and they put in a giant head-and-shoulders-and-elbows top for added emphasis. — Cassandra Unchained (@michaeljburry) October 11, 2026 Read Also: EXCLUSIVE: MU Stock Could Soar 190% and Hit $3,000 In 24 Months — Wall Street Bull Says Math Is 'Pretty Simple, Frankly' Government Preferred Stock and 90% Dilution Risk Beyond technical indicators, Burry pointed to fundamental risks tied to the government’s senior preferred stock (SPS) liquidation preference, which continues to grow each quarter. S. Treasury converting its senior preferred stock into common equity.
” Policy Inaction Halts Value Creation Addressing potential operational catalysts, Burry argued that unlocking underlying value in Fannie Mae and Freddie Mac requires ending government conservatorship or drastically reducing the senior preferred liquidation preference. ” How Have These Stocks Performed? 75% over the year. 84% over the year.
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