Fannie Mae-No Politics (FNMA)

[Louie_Louie]

Clark, that was Trump administration plan for reform, not receivership. That whole document is pointing to reform, conserve, making the GSE's less reliant on government funding and more on private capital. If they mention receivership, it's an absolute last straw threat, but bankruptcy is not what this whole document is stating and defining.

You could very well state that bankruptcy is on the table for every american company under the US government and argue you're right. Could it happen? Sure, like one in quite a few billion chance every american company goes into bankruptcy this year. The key here is, they know they can threaten it, but that's as far as it goes. Obama tried for bankruptcy pretty much both his terms, and the best he could do was the NWS . He was being warned by the mortgage industry, banks, and economist big players on what a real bankruptcy results would end up being/doing, so he did not go all the way there.

There's numerous other factors why they'll never BK. The assumption of the GSE's debt, totally pissing off the countries who hold a ton of the GSE bonds/debt like China. The housing market would automatically lose the 30 year mortgage and banks would double interest rates on mortgages that would probably be 10 years or less.

So saying it's on the table to scare people is an act of redundancy and misleading when we all know it's an idle threat.