BLUE SKY BREAKOUT

[~ Blue ~]

1) Giant Hedge Funds lobbying for the Government preferred shares. According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.

Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market, according to the investors.

http://online.barrons.com/article/SB50001424052748704253204578466950395417708.html?ru=yahoo&mod=yahoobarrons

Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.

http://www.bloomberg.com/news/2013-04-30/paulson-leads-hedge-fund-lobby-push-to-privatize-fannie.html?cmpid=yhoo

2) If the Hedge Funds plan accepted by the government Conservator-ship will end, IMO. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.

3) Monster news out(!) NY Times: Budget Office Cuts Estimate of Nation’s 2013 Deficit by 24%


By ANNIE LOWREY
Published: May 14, 2013


WASHINGTON — The nonpartisan Congressional Budget Office has slashed its projections of the current-year fiscal deficit because of bigger-than-expected tax receipts and payments from Fannie Mae (FNMA) and Freddie Mac.

The $203 billion, or 24 percent, reduction to the estimated deficit does not comes from the $85 billion in mandatory cuts known as sequestration, or the package of tax increases that Congress passed this winter to avoid the so-called fiscal cliff. The office had already incorporated those policy changes into its February forecasts.

Rather, it comes mostly from higher-than-expected tax payments from businesses and individuals, as well as an increase in payments to the taxpayers from the bailed-out mortgage financiers Fannie Mae and Freddie Mac.

It also cut expected spending on Fannie and Freddie by about $95 billion, a reflection of bigger checks that the two companies are cutting to the taxpayers. The mortgage financiers, which have required more than $180 billion in taxpayer financing since the government rescued them in 2008, have returned to profitability in recent quarters on the back of a stronger housing market.

http://www.nytimes.com/2013/05/15/business/cbo-cuts-2013-deficit-estimate-by-24-percent.html?partner=yahoofinance&_r=0

4) Obama Urges Congress to Back New Housing Regulator (EXPECTED NEWS)

President Barack Obama urged lawmakers to back his nominee to oversee mortgage financiers Fannie Mae(FNMA) and Freddie Mac, Democratic Representative Mel Watt.

"Mel's represented the people of North Carolina in Congress for 20 years, and in that time, he helped lead efforts to put in place rules of the road that protect consumers from dishonest mortgage lenders and give responsible Americans the chance to own their own home," Obama said in his weekly radio and Internet address.

"He's the right person for the job, and that's why Congress should do its job, and confirm him without delay," Obama said.

The North Carolina lawmaker is expected to face a tough confirmation battle in the Senate, where Democrats are likely to need some Republican support to get Watt approved.

If confirmed, Watt would replace Edward DeMarco, a career civil servant who has led the Federal Housing Finance Agency in an acting capacity since 2009.

Fannie Mae and Freddie Mac were seized by the government in 2008 as mortgage losses mounted. They have received $187.5 billion in taxpayer funds to stay afloat, while paying about $58 billion to the Treasury in dividends.
http://www.moneynews.com/Economy/Obama-Congress-Housing-Regulator/2013/05/13/id/504089

5) To sum up, FNMA share price will hit book value per share price. Currently FNMA book value per share 54 dollars, IMO.

calculation of book value.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=87810091