Fannie Mae-No Politics (FNMA)

[big-yank]

I try very hard not to be guilty of what I detest in others. That would be falling victim to stupid conspiracy theories. So I am not showing anything but concern for some of the connect-the dots hints we are getting doled out in snippets since the election.

Haven't sold any shares and have no immediate plans to do so.

But there is a lot of text in recently issued articles that seem to indicate movement in the direction of Berko's earlier plan to privatize. There have been TWO recently that basically said "Mnuchin should just put some non-bank hedge funds in a room and let them come up with a way to recapitalize and privatize Fannie and Freddie."

What does that remind me of?

http://online.wsj.com/public/resources/documents/FairholmeOffer.pdf

I have been through too many distressed plays where big money guys come in at the end, put up recap financing, and boogie with all the loot, wiping out commons or doling them a pittance while the new money takes the $$$ and runs. In this case, that absconding would be with MY money.

There is value to resisting the temptation to celebrate a victory before it actually becomes one. There is huge money at play in Fanniegate. Huge money with heavy Wall Street players and politicos is enough to create a measure of apprehension for any experienced investor that ever lost in a World Com, Tyco, Kodak, GM, Enron, Exide, Gateway... ad nauseum... collapse. It is easy to get "gamed" by big guys with big attorneys.

Stay vigilant and watch your backs, everyone. There is huge upside here for everyone. But there is huger potential for a team of Fellow Travelers if they can reduce the field of finishers in the money to just a few buddies that divvy the spoils into fewer, larger pieces. When people continue to denigrate investors as just being stupid "lemmings" it reveals a latent disdain for average investors just following the big players for a clue on grabbing a winner.

JMHO.