Fannie Mae-No Politics (FNMA)

[Louie_Louie]

We are in for the perfect storm my friends!!! The Hurricane in Florida and Carolinas will add to the GSE negative bottom line, we have sky high home mortgage rates (7.5% 30yr avg now) knocking down demand. If there was material shortages before because of not enough homes being built, so now rebuilding the large area in Florida will compound that. Yellen and Deese both saw this coming when the hurricane was days away so they started to announce their departures because of their failed following of current administration policies and one too many things going wrong that can be laid at their feet. They don't want to be around to have to clean up the mess they created and it will get worse as this recession gets dug deeper in. We also have in the news today that many new home buyers (mostly millenials) during the pandemic fiasco are now wanting out of their top of the market purchases of homes that they did not fully vet and evaluate or inspect correctly. Can you say 2008 walk aways? Drop the keys at the bank AGAIN!

This is all going to be hits on the capital that the GSE's have currently. The government will dig the GSE hole deeper for us to sink their claws in deeper, I have no doubt, even though nothing I've mentioned in previous paragraph is, or was in control of the GSE's. The government will use our capital to cover the losses that are for sure to develop from the things I mention. Preserve and conserve will be thrown out the door.

I'm usually an optimist on things GSE, I own 250k FMCC FNMA combined, that's my vote of confidence in what I had assumed. I have also believed in rule of law and karma pertaining to our situation. The government has succeeded in guiding us from one disaster they created to and even larger one they also created now! If the midterms do not bring us real serious change, the GSE's may well be doomed, regardless of court cases. If we were to be released now, we would be re-taken over in six months with all the foreseeable losses coming our way. Banks are not failing again.... yet, but insurance companies are in Florida, who will assume the losses from an insurer unable to cover? How long before the current group see's the 100billion plus in GSE reserve loss capital? JMHO.