Fannie Mae-No Politics (FNMA)

[big-yank]

Why would the government want to keep supporting FnF or risking future, potential bailout costs when all the proceeds are potentially going to be paid to hedge funds?

Maybe it is just better to shut them down and develop new alternatives to replace them. Maybe that is the only way to get the legislature to work coming up with something that WORKS instead of looking for ways to just stick it to the other party.

Cash out the warrants. Take 79.9% of the liquidated value and move onto the next generation of mortgage financing, once Fannie & Freddie are killed off. Maybe Ginnie Mae and FHA can at least be salvaged... then, again, maybe not. And, hey, the hedgies can enjoy their 20% of the proceeds from the FnF cadavers as they are sold off for dissection and academic review among Harvard fellows for years to come.