Freddie Mac-No Politics (FMCC)

[tutt1126]

The U.S. May Need to Sell shares of FNMA & FMCC

I believe that the U.S. government — because of a changed global economy and the U.S. dollar reserve based changing — is going to need to sell its stake in FNMA and FMCC. These two companies will generate perhaps $100 billion or more for the government. 

And I believe that as the U.S. government goes to refinance its massive debt in 2023, selling FNMA and FMCC will be one of its top choices. Why?


Because it’s more politically acceptable than raising taxes or cutting programs and faster than changing policies to increase overall economic growth. 

And when the U.S. government sells, the true long-term value of these stocks will be shown, which, in my opinion, is hundreds of percent higher than where they currently trade. 

Fair warning: This is a very contrarian and controversial take on FNMA and FMCC