Fannie Mae-No Politics (FNMA)

[imtheshadow]

What does the current pps tell us? Look, there are likely thousands or more of very sophisticated investors and traders around the world watching these two companies. In the absence of the NWS and warrants, the pps of these companies would be close to where they were before the cship less dilution needed for higher capital requirements. Despite this enormous value, the collective wisdom of the market says the NWS and warrants remain a stranglehold because of the deference the courts are giving the gov't re anti-injunction clause. I unfortunately agree with those that believe the gov't is addicted to the NWS and they won't let it go without full use of the warrants and, at a minimum, wiping out common (which I own) in the process of a "recap and release". Only things I see that could change that are 1) someone goes after the constitutionality of HERA itself (I'll be dead when that is settled) or 2) Sweeney orders the 11K docs released and those are so embarrassing/incriminating that the government settles with both pfd and common. Except for Sweeney, the courts have failed us, both political parties desperately want the money, the press still believes the false narrative (and so do some in the courts) and public perception is either non-existent or negative. I think the "market" feels the same way - and that's why the pps is where it is today. glta, shadow