The Toxic Twins Recurrence: Fannie Mae & Freddie Mac
Michael Burry
· Cassandra Unchained
· March 26, 2026 at 13:58
· ⏱ 1 min read
| Read on Substack ↗
Summary
The author reflects on the intense psychological difficulty of holding a position through a severe downturn. He notes that his study of market history, which is full of spectacular recoveries, provides the fortitude to hold on when every instinct is screaming to sell.
•The author describes the extreme emotional pressure to close a losing position.
•He uses his knowledge of historical market recoveries as a tool to endure periods of significant drawdown.
•The article implies that holding through immense pain is often a prerequisite for capturing spectacular returns.
•The title suggests the article will discuss Fannie Mae and Freddie Mac, but the provided text is a general reflection on investor psychology.