Fannie Mae-No Politics (FNMA)

[contrarian bull]

I bet 98% of the US population does not know that F&F will need a draw, or what that means, or why they will need it.

I think many in congress, and likely the White House, will seize upon this draw as further evidence that F&F need to be shut down before they bankrupt the entire Federal government. I expect a lot of grandstanding that may actually hit the mainstream news. In response to the MSM reporting people will call and write their congressperson insisting they shut down these companies who are so foolish with their cash as to not maintain a proper cash reserve.

Yeah - we know that's a lie, congress knows it too - but most people don't know and the politicians will use that.

Based on the impact of the impossible to pass Corker-Warner proposal I think oddly enough this will also impact these stocks.

Or - like you said - nothing will happen. Or it'll be a "buy on the bad news" thing and they will jump to $3 this week.

I am not worried enough to sell, and have some buy orders staggered in between $1.70 and $1.00 just in case it gets fun.

This may be one of those Rumpelstiltskin stocks where you just need to go to sleep for 6 months and not let the day-to-day stuff get you upset or giddy.

Everyone knows that Fannie and Freddie will need a draw. Shouldn't move -30% (or even -5%) unless there's additional information that's unknown.