Fannie Mae-No Politics (FNMA)

[kthomp19]

Why would anyone use current market cap as a basis of future share value???

Where did I do this?

The only place I used the current market cap was in determining how much the commons get diluted at the beginning of the senior-to-common conversion case. That calculation didn't involve the future share value at all, only the value of the current commons (current market cap) versus the value of the seniors ($193B in par value).

Current market cap is in no way indicative of future valuation of the GSE's after release.

Again, I never actually link those two things anywhere in my post. So this point is moot, regardless of whether it is correct.