What's on Jack's market watch list? Frequent CNBC-TV guest contributor and Harbor Advisory's Chief Investment Officer, Jack De Gan, is keeping an eye on:

Christmas Eve Mugging

December 31, 2009

Taxpayers were accosted by the Treasury on Christmas Eve when the $400 billion cap on assistance to Fannie Mae and Freddie Mac was lifted providing unlimited taxpayer funding for the mortgage giants. It is time to admit the Government Sponsored Enterprises were a disastrous way for congress to try to expand home ownership.

The common and preferred shares should be cancelled providing taxpayers a break and investors a reminder that with potential gain comes risk of total loss. The right thing to do would be to fully nationalize the firms thereby lowering their funding costs and allow for an orderly wind down over a predetermined period after which the portfolio of mortgages would be sold to investors.