Fannie Mae-No Politics (FNMA)

[big-yank]

1.The stress test substantiates the concern for inadequate reserves. It is a "Houston, we have a problem" moment of concern for the regulator/conservator and for Congress considering reform measures.

2. My predictions were over another housing crisis which may or may not signal a decline in housing prices. Many experts share this same concern.

3. There is zero consideration of or sympathy for big banks that would ever lead to another bank bailout. Have you listened to Capuano or Warren?

4. Loss provisions carry no absolute certainty. They are estimates. Just like earnings predictions are simply estimates.

5. The stress test numbers have nothing to do with McFarland, nor did I ever say or imply this. The actual reported income numbers, however, DO MATTER, and further weak numbers would refute the GSEs ability to exit conservatorship and recapitalize. The recap $$$ COMES from income. Two bad quarters at Freddie DO discredit McFarland's projections.

6. If all the GSEs losses are from derivative hedging and simply recycle,over time, then why would not the identical presumption apply to any income, going forward? Are you saying all McFarland's income projections are bogus, too?

Your argument is like watching the computer's refresh arrow as it just endlessly spins, round and round, while the computer is rendered useless until you give up and end the seesion.

JMHO.