Fannie Mae-No Politics (FNMA)

[RDG013]

It would be far eaisier to have the govt use some of its bailout funds to actively buy FNM and FRE on the open market. First, it would do more for the economy than giving banks money to hold in reserve, far more! Second, it would make it easier down the road for the govt to privatize if they take some shares of the market at these low prices. Finally, the increased PPS of bot h GSE's would have a direct impact on many financial institution bottom lines as they are still holding a good chunk of both.

BTW, what happened to that PR from last week that stated this would not happen?