Fannie Mae-No Politics (FNMA)

[uf-john]

We are only in a recession if we do 2 quarters of negative growth. it's highly likely this quarter could be negative even with a good january, because of the airlines, cruiseliners, and hotel industry getting hit. the risk with this stock is if we have massive foreclosures and fnma can't absorb the hits and they wind it down or just steal it again. the upside is steve mnuchin said we are going to have a monster 3rd quarter and 4th quarter and rebound quickly. if this happens and the number of foreclosures are mitigated, this could be a gigantic goldmine. the other question mark is what happens with the warrants (will be decided in court over time). mnuchin and calabria aren't going to be able to IPO unless they buyout the existing shareholders for a generous number (i.e. $27 a share was thrown around). the courts are not going to let them just wipe the shareholders out and IPO so scratch that idea IMO. However, the swamp bankers are salivating at the idea of shareprinting and dumping 80% of the current market in there, which in my guess would make this an $8-$24 stock, which is still good, but not the massive goldmine. FYI, there are other stocks out there right now you could dump into and triple your money and I think if you come back here later and buy back in, it will probably still be here at low prices as the courts play ping pong and the administration delays. My guess is Trump is going to get to the vaccine or pill very quickly and we will be out of this quickly. All In my opinion.