From CNN:

Mortgage finance giant Fannie Mae reported a much larger-than-expected loss in the second quarter and slashed its dividend, more signs that the problems in housing and financial markets are not over.

The firm reported a net loss of $2.3 billion, or $2.54 a share. Analysts surveyed by Thomson Reuters forecast a loss of 68 cents a share, compared to earnings of $1.86 a share a year earlier. But large increase in reserves for bad debt and a writedown in the value of its holdings hurt the results.

The company also slashed its quarterly dividend to 5 cents a share, down 86% from its previous level, as the company tries to maintain the capital reserves it needs to operate.

Shares were down nearly 8% in pre-market trading immediately after the report.

On the heels of Freddie’s larger-than-expected loss, and in the wake of a much-ballyhooed federal bailout, Fannie still manages to lose almost four times what analysts expected.

Which raises the question: if these economists are the same ones who called Freddie’s (missed) loss, and are the same ones who are predicting imminent turnaround in the housing industry (if we haven’t reached it already!), then how much longer is this death spiral going to continue?