Fannie Mae-No Politics (FNMA)

[Wise Man]

THE STOCK MARKETS RISE ON STIMULUS HOPES. The world's eyes shift towards Fannie Mae and Freddie Mac as the Government's tools to announce a $3 Trillion QE stimulus program by releasing them from Conservatorship and announcement of a buyback of all the second-lien mortgages granted by the banks during Conservatorship using FnF's collateral (business stolen), either in cash-out refinancings or at origination for the down payment.
The charter allows FnF to grant equity loans and also buy mortgages 100% LTV. This will free up Capital in the banks that will start lending out massively to the private sector. It will occur at the same time a new wave of refinancings approaches thanks to the market rates collapse. Only the Common Stocks reflect the value of the enterprises. The JPS are simple obligations, like a bond. Get ready!