Fannie Mae-No Politics (FNMA)

[chessmaster315]

No. Im not giving anything away. I do think maybe that some shareholders are a bit overly optomisitic thinking that the government will hand back our 50 billion dollar overpayment and NOT want to write down DTA's, that is, Fannie will have to pay taxes, just like fannie sharholders will pay taxes on "gains". That is, for shareholders who bought these shares cheap, they will have to pay taxes on any gains..long or short term, as applicable.

For those shareholders who paid 40 or 50 bucks a share and counted on statements by the government such as Hank Pauslen, in July 2008, that said fannie was in no need of a bailout, there wont be any gains, just getting back what the government took away.

The government is missing out here. They do not understand the multiplication factor with money. When Americans have a dollar, they generally spend it, and the person who gets that dollar spends it, and that person spends it also.

Each time that dollar is spent, it generates taxes of about a quarter or so.

Its possible, or even likely the government will make money by paying shareholders the 50 billion due them, as that 50 billion will be taxed again and again and again, as this money is spent, distributed, invested, etc, generating taxes with each transaction.

The question is not whether or not the government will recoup its money in taxes, the question is how soon will that happen. I suggest that money will change hands about 7 times in 2 years, generating more in tax revenue than 50 billion.