Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

I think our major differences in investment approaches is the following:

(1). You believe in the validity of many governmental uses of power by the FHFA and UST that I don't think will either be enforced or followed through with.

(2). I don't think having a liquidation preference is relevant so long as there is no housing market crash and I would rather have a voting preference and ownership position as I did on September 07, 2008.

(3). Time to recap is on my side as each day the gses' earn and retain one more dollar that theoretically could be put to where they should have been put since the FHFA ran out of bogus accounting assumptions - TO BUILD CAPITAL ORGANICALLY! (Yes, I am fully aware of your reasoning as to why I am wrong on this one, as well as the above 2 points.)

I still think it is way too early to be guesstimating sp levels at this point and we are just going to have to wait and see what the respective parties legal rights are and the vision of the federal government has it relates to the gses', the administrations policies, and the "conservatorship".

Believe me I know all about WHY you think I'm wrong on the above points, but we can agree to disagree about the future.

One thing we both agree on is that at these deeply distressed share prices alot of bad outcomes are baked in and we should both do well! GLTA!