Fannie Mae (FNMA)

[jeddiemack]

My sense is its all about the November elections and the feeling that the Senate will be won by the republicans.

Word I am hearing is the swing is 6 to 8 seats.

Won't really change the plot for fannie and freddie as there is not solution other than the GSE's in long term housing and mortgage finance.

But, will make "deal" cutting harder by the obama peeps.

Look for nothing to come out of congress over the next two years.

The courts will make this a mess.

Look for some rescission and Fannie and Freddie to eventually be set free - with some major new oversight - but ostensibly undiluted. Its only going to take 3-4 years.