Fannie Mae-No Politics (FNMA)

[contrarian bull]

resolve all disputes with FnF private investors before starting on feds unwinding of MBS.

I think the effect of unwinding QE will be very small towards f&f. Might raise future mortgage rates a fraction of a point, but they would get more selling their securities so I think it's a wash.

Only about 40% of the treasury portfolio is MBS and not all of them are from f&f.

A more interesting fact - their plan will reduce the US money supply by $2.1 trillion over the next 4 years. This would be a PERFECT opportunity for Trump to do what he said during the campaign and PRINT MONEY to reduce the deficit.

If he only printed $2.1 trillion over the next 4 years - the net effect on the economy and inflation would be ZERO. This is a one-time opportunity to print money with no negative effects. I hope he takes it.