Fannie Mae-No Politics (FNMA)

[Louie_Louie]

There are way more reprecussions to Rship than just those you specify.

30 yr would go bye bye along with any affirmative action handouts, banks would have made sure of this. Banks do not base loans or savings on affirmative action. Banks would also be charging 8-12% for mortgages, or more because they dispise risking any of their capital, earnings.

The GSE bonds, debt that China and other countries held would have to be settled, putting treasury and government in a huge bind.

BTW, most started jumping in the JPS way back when Obama was mentioning receivership bankruptcy numerous times. The thought then was capital structure, prefs get par, cause they were beat down anywhere from 1/2 to 1/3 of par. It's why so many hedge funds jumped in. But as you can see, the scenario changed.