Fannie Mae-No Politics (FNMA)

[Pecker9Wood]

I was thinking Freddie has 100% risk diversion and Fannie is has a lot of derivatives. Most likely why Fannie is slow too divert risk as no one wants too pay on those insurance policies. Someone else knowledgeable in that market can tell you how those derivatives go away, but me thinks they too are time dependent. Me thinks that there is nothing too stop and no reason too keep Freddie from being released from conservatorship. As for Fannie the only way I see them getting released is for them too retain more cash reserve. I am not expert but that is the way I see it. The problem for Fannie is how much.