I honestly don't think government has a chance in hell of doing anything IPO-ish with the GSE's. Look at all the factors current and historical. Even Warren Buffett steers clear of the GSE's and he UNDERSTANDS their business! Even if he was offered some sweet heart deal, he's not stupid enough to dump money in what will become a socialist housing experiment with tiny profit for maximum risk.
Young investors could care less about stodgy businesses like the GSE's because they are all being currently hypnotized by bitcoin, tesla, Amazon, gamestop & AMC bets, etc. So where does our crooked government find big money investors? Foreigners? Lmao. After their take over of this and now debacles like Afganistan following this administration, who's going to trust them to do the right thing? No one, that's who! Not even the hedge funds after villianizing them for years and fighting them in court.
The idiots running government are between a rock and a hard place. Tim said it best : the current administration needs to admit government screwed up royal from day one and then they need to undo everything they did and put back as before. I don't think any scheme or type of underhanded angling by treasury or FHFA will help do anything but make this a ton harder to get done. Those who would invest that are in the know and understand the businesses most likely have zero confidence in sinking large sums of money into something government can turn around and confiscate at will! Remember that SCOTUS ruling! It will be there biting government on the ass constantly! FHFA can do whatever it wants, including funneling all the GSE profits to treasury.
Deep, deep tangled web weaving and moral hazard on governments part has made this a toxic investment. Even in a utility model, I doubt they could get 1/100th of private capital in first loss position by offering 2-3% return on investment. This administration is not for profit capitalism, so they would definitely give tiny low ball returns for really high risk because of the socializing factors.
Some administration...this or the next, needs to get serious before a bad down turn happens, or government WILL ABSOLUTELY have to save the GSE's from bankruptcy, then that administration will take all the heat, all the flack, all the media whipping because if the GSE's fail, so does a big part of the economy. They have to know by now that they are playing with fire, very hot and unpredictable.
