Fannie Mae-No Politics (FNMA)

[jeddiemack]

So that's your take.

Mine is / was that the warrants were nothing more than boot for the collateral and would never be used. I felt like the company's were cash flow positive from operations and the businesses would be fine long term as they did fine ... except in the holding loans secured by homes. homes were financed in tranches and by far the older loans were good. the troubled loans were only the more recent ones, and with that they were not 100% worthless, the reserves were clearly too much and were the back bone of America.

So, yes, it was expected that longterm... betting on America they would be fine and the warrants would never ever ever be "needed".

it was really that simple thought pattern.

So,

Using the warrants would be bad for common shareholders bad for the company ... bad bad bad.


The absolute best thing is to set these entities free at as high a valuation as possible.. everyone wins.

Gov't gets taxes
people buy things
then economy is better
jobs are created
everyone benefits.
as more income taxes are paid.

as is... only government benefits.

Government is greedyment.