Fannie Mae-No Politics (FNMA)

[JSmith5]

Simply, I could have fixed this in an afternoon... maybe even before my 10am T time... but these clowns... 18 years of muddling and no real progress.

Hi Jeddiemack - Because its Washington

It's sort of like the old joke - there's good news and bad news - the bad news is that you lost your BMW because it went over a cliff and the good news was that your mother-in-law was driving.

The bad news is that the September 28 warrant expiration is just a line in the sand that can be extended at any time. The good news is that we have an election coming in November that they have to sweat and that can't be changed. So now, finally, we appear to have a hard stop.

The good news is that there has been a lot of progress towards resolution - the bad news is that its taken over 18 years. We have had some backsliding (like the NWS) but no bankruptcy; suspending the NWS; being allowed to rebuild capital. One of the biggest benefits of time has been that they have all appeared to agree that the companies function well and all this talk of having to "reform" the companies has gone away (no one ever said what that meant and, by any definition of the term, they "reformed" right after the meltdown so they could survive and prosper ever since. All this talk of multiple companies and other alternatives has faded. Plans are in place (supposedly) and we appear to be be inside the 5 yard line with the clock winding down to the elections.
I know, as an investment, this has been like Lucy and the football. So we are right to be wary and cautious. But things are shifting from pure caution to cautiously optimistic. Remember - the price of Fannie on December 23, 2024, was $2.62. So they must be doing something right. They just need to keep it going.

Nats