Fannie Mae-No Politics (FNMA)

[kthomp19]

I think there is little question that the Federal Government, since 2008, has NOT had rehabilitation and restoration of the gses' to this previous status quo as a goal.

I agree. Between 2008 and 2012 they were just kicking the can down the road, then in 2012 the intent to wind them down was made clear.

And you think that the investing public is going to say, "Sure, here's $200B, I am sure the government will preserve and conserve and allow me to profit from my investment in the gses', WHAT COULD POSSIBLY GO WRONG!"

If the consent agreement is sufficiently protective of shareholder rights, and the investors think they will get a good enough return on their money, yes.

Is your point that if they price a reipo at 1 penny a share people will buy it?

The lower the share price the easier the re-IPO is to conduct.

And yes, if the new investors make enough money they will absolutely throw existing shareholders under the bus. They would be stupid not to, actually.