Fannie Mae Preferred S (FNMAS)

[brandemarcus]

The difference with 2008 is that it can be argued that the prices are justified by the rents unlike in 2008. There was decline in prices in California from 1990 to 1996, so yes it could happen again. The problems in one big state(Texas in 1980's) are not that large to hit the gse's. That was proven in the past and the new reformed Gse's will do just fine. That is unless the government or banks force them to make bad loans as social policy. You can't have it both ways and the banks did even worse on the loans they kept in 2008 anyway. There were are bubbles in Canada , Spain , England and no Gse's so my point is they are not the problem.