Fannie Mae-No Politics (FNMA)

[Potty]

Hmmm, but all of the facts remain the same and the logic of the RnR remains the same. Some facts as I see them:

A JPS conversion is very likely, since it increases CET1 - so $33 billion dilution

A large offering of new common shares is likely, since they need to meet capital rule requirements before release from conservatorship under some kind of consent decree -- so $50-$100 billion dilution

Face value of JPS protects prefs, allows them to convert at offering price -- hence avoiding common dilution

Nothing protects old common -- its values is DILUTED and MASSIVELY

Lisbon is a beautiful city (threw that in so we can agree on something)

Common holders have a Noah's Ark in front of them, in pref shares, they can board the Ark by converting their common to pref -- THIS IS ALLOWED!

I would board that Ark between now and the Fall because otherwise the flood of dilution will wipe away the stain of present common holders...

OK, I am done for the day here, going to have a run and fix a windowsill on my old house, good luck my friend!