Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

The 5th Circuit is typically one of the best Circuits to be in when dealing with governmental overreach. It will be interesting to see who the trial Judge is that will be assigned to reside over the case.

Since September 06, 2008, almost everyone interested in taking a position in the gses assumed that jps was the way to go and logically was the best bet, but that paradigm seems to have shifted in the last 5 years.

Quite a few of the people who sold when the SCOTUS ruled in Collins were either looking for quick silver, disillusioned by the inability of the federal courts to decisively rule against the federal government, or after 12.75 years said that's enough for me.

Some previous jps holders may have possibly shifted to common since the quick recap and quick dilution solution don't seem to be happening.

I looked at a performance chart in one of my brokerage accounts the other day comparing common versus jps YOY, and it looks like they got hit 2x as hard as common!

I hope we all do well and I still believe that Private Capital in a 1st Loss Position is the best use of the gses for the American people and the government that is suppose to serve them.