Fannie Mae-No Politics (FNMA)

[eltatriton]

Despite Navy's optimism, I don't think this is running tomorrow. I think F&F's 9 lives are over. A WSJ article isn't any different than any of the other stuff we've gotten in the past. If this was two years ago, maybe we'd be up 20% tomorrow, but I think people are tired now and want to see some real action. I can see this popping tomorrow morning but then retracing as traders take profits.

And the article says it F&F would remain in government control until competitors pop up, which could take years? That's not exactly good news. I hope the NWS would be abolished during this time period, and F&F get to build up a capital buffer.

I also think Mel Watt is going to send the payment at the EOY. With all these articles popping up on F&F news, you know there's a lot of conversations going on in Washington about housing reform. If there really is a legislative proposal that's going to be released soon, you'd bet Watt is right in the middle of all of it. Watt has always been for Congressional reform, so I can see him thinking something along the lines of, "well if there's going to be a bipartisan bill coming out soon, I'd be best to keep the status quo instead of upset anything or anyone, thus hurting the chances for Congressional reform". He doesn't want to do anything.