Fannie Mae-No Politics (FNMA)

[rekcusdo]

Well, there are plenty of stocks that went bankrupt, was reissued, and then flourished...GM comes to mind...

But no, I can’t think of any stock that would be similar to what happened to the GSEs.

The reason I tend to disagree with this theory is because of the nature of man.

Will institutional investors be hesitant to invest at first? Perhaps. But I believe that would only last so long. And in the meantime, the stock would begin to rise from private investors looking for a short term growth that would turn into longer and longer holding periods.

Given how much money the potential stock would be worth, greed would overcome caution eventually.