Fannie Mae is supposed to be prime, but it turns out that much of its loan book is made up of less than perfect credit.

Forbes reports that yesterday “Fannie Mae executives told analysts that 43.0%, or $946 million, of the $2.2 billion in losses incurred during the first quarter involved Alt-A loans. They also said that the company’s ‘Alt-A book will continue to drive an outsize portion of our overall credit losses.’

The bulls found a home in Google on Friday. The stock price rose nearly $90 a share, on reports of 42% revenue growth in the first-quarter, bringing $28 billion in share-holder wealth to Wall Street. No doubt this Google news was welcomed in the face of staggering losses in the financial industry.

And Rick Pendergraft sees Google continuing it’s search and advertising dominance online even against the possible combination of Yahoo and Microsoft.

US banks continue to rack-up losses amidst the credit crisis.

Wachovia, one of the largest banks in the US, reported a $.20 per share loss in the first quarter, versus forecasted gains of $.40 share… Quite a reverse of fortunes…

Andrew Snyder says, “You do not think the credit crisis is over just like that? A few weeks of ups and downs, some presses releases, and some rule changes and the economy is fixed. Get real. This mess is just getting started.