Fannie Mae-No Politics (FNMA)

[HoldenWalker99]

Why are you celebrating?

1) MBA and David Stevens are not aligned with existing GSE shareholders. They wants CSP to send all of the business to banks.

2) Explicit guarantees on securities is much worse than implicit guarantee on GSEs. Best solution for GSE shareholders is implicit guarantee on GSEs backed by adequate private capital. Explicit guarantee on GSEs will result in ridiculous fees paid to federal government. Explicit guarantees on securities just lets the bank get in on the action.

Same people cheering this article are the ones who thought that PIMCO calling for nationalization was a good thing...