Fannie Mae-No Politics (FNMA)

[955]

Solid post.

It is interesting that more and more people like Stevens realize that the federal guarantee is not going away. However- imo he is not to be trusted .
He has softened his stance to remain relevant. His long term strategy is to reamin in the game to be able to influence the administration to steer the mortgage market to the tbtf banks. He used the word " receivership" which is the death knell to shareholders. If they place the GSE into receivership and concoct a plan to replace them with something similar - no reasonable investor would touch it with ten foot pole. similarly- people like him were advocating OCWEN financial as an alternative to FANNIE- Ocwen is essentially bankrupt- where would housing finance be now?
I am disgusted with Sorkin on CNBC- everytime this topic comes up he goes directly to the hedge fund windfall. What about investors seeing an opportunity to invest in future of the American economy. Investors seeing two companies in Conservatorship becoming profitable that are essential to average Americans being able to become homeowners. What about all the pension funds, small investors and Fannie employees. i am confident that the current administration sees things correctly.