Fannie Mae-No Politics (FNMA)

[big-yank]

I believe that Fannie preferred shares represent a realistic opportunity to deliver an appreciable return over a relatively short span of time. My expectation is a share price 100% higher than my entry point, delivered in 2 years or less.

My expectation is not an enormous gain in Fannie like buying common shares for 25 cents and demanding an end-game S/P of $100 or more or "my Fannie has been stolen" since the GSEs owe a debt to the government for a huge effort to save them that greatly transcends the simple repayment of direct, verifiable bailout investments. Fannie and Freddie reaped enormous benefit from many government actions including near-zero interest rates, TARP relief of bank assets, Quantitative Easing that at times reached $10 billion a week in absorption of open-market bonds including those MBS backed ones issued by Fannie, the bailout of AIG who bought and continues to buy much of Fannie's MBS, and on and on. Fannie (and Freddie) were gifted during the crisis with unique access to FED rates previously only available to a few, cornerstone banks in the Federal Reserve circle, which greatly improved Fannie's access to inexpensive capital, unprecedented for a private enterprise.

JMHO.