Fannie Mae-No Politics (FNMA)

[Always wondering]

bill-ackman-harbor-conference:
Excerpts from Mr. Ackman:

“…the U.S. government, every quarter, is taking out 100 percent of their profits, right. So you have the housing finance system, this is supposedly an off balance sheet company. It’s not consolidated into the balance sheet of the U.S. government. And the U.S. government is taking 100 percent of the profits and, you know, these — these are the — the worst capitalized institutions in the world. And that’s not a sustainable situation.”

“I think there are some members of government who want to see Fannie and Freddie go away. But if Fannie and Freddie go away, so does the 30-year pre-payable fixed rate mortgage and so does the housing market.”

“…the government is not one unified body. It’s a series of people. There are a lot of very intelligent people who work in the Senate and in the Congress. And a, you know, I think that ultimately, truth prevails. That’s been my experience as an investor and my experience in life. And we need to recapitalize Fannie and Freddie.”