Fannie Mae-No Politics (FNMA)

[NeoSunTzu]

Read closely: the largest year on record for IPOs EVER is $216B FOR THE ENTIRE MARKET! The most ANY single company has EVER raised in the IPO market, initial or secondary, has been ~$35B. The GSEs are mandated to be extremely overcapitalized, they are heavily regulated, profit distribution will be regulated, they are under congressional oversight with very little ability to innovate, IF ANY. They are NOT going to raise $200B for these companies from the market - there are much better choices - and I believe the powers know this - how could they not.

They've been in c'ship for ~15 years and they can stay that way for at least another 5, if not longer, if necessary - and this actually "solves" a number of funding problems - be patient and wait. In the end, the government will have to lop off some portion of the liquidation preference, sps, warrants or other wishful thinking remuneration in favor of a sensible capital raise that doesn't destroy current shareholders and gives more confidence to those new shareholders.