Fannie Mae-No Politics (FNMA)

[Sogo]

My point was only that GM was not put into conventional bankruptcy. Conventional bankruptcy is what it should have faced, and bankruptcy has literally hundreds of years of legal precedent and is a well established part of hundreds of years of investment law. There is no mystery about bankruptcy. Yet, because there was a politically generous group of donors involved (unions), the administration violated those hundreds of years of precedent in order to serve the unions, distorting conventional bankruptcy to its whims.

So the GSEs were never facing bankruptcy and won't be. But the point is that when there is a strong enough political motivation, the gvt will do whatever it wants, and it could indeed get away with it. It happens all the time. Courts are our hope here, but it's easy to imagine them not being able to stop the other two branches ultimately. I'm holding no matter what, until it's decided one way or another.