by Calculated Risk on 7/18/2008 12:40:00 AM

From the WSJ: Mortgage Giant Freddie Mac Considers Major Stock Sale

Freddie Mac ... is considering raising capital by selling as much as $10 billion in new shares to investors ...

The main buyers for any new-stock issues are likely to be existing shareholders world-wide, according to one person involved in the discussion, adding that a definitive plan hasn't yet been determined.

In the short term, a sale of new shares might eliminate the need for the Treasury's help, but a government bailout might still be required later.

A little stock rally, and, well ... this seems extremely unlikely to me.