Fannie Mae Preferred S (FNMAS)

[Joe Stocks]

R's want to get credit for finally fixing FnF - something the D's could not do. "We can, they can't" is enough for the R's to move ahead. I just hope they wait a year or two.

Just think, $36. bil in preferreds suddenly showing value would be a nice boot to the wealth effect with little cost to the govt. A Headline telling of the govt getting all their money back from FnF would go a long ways too. Me thinks they will keep close to the status quo until the taxpayers are made whole. Then you have an enterprise that is profitable and hard to deny the shareholders some equity. The problem I see though is that the govt will still have $188 bil in senior preferreds and warrants. How do they spin cancelling are selling on the cheap those as being good to the taxpayer even if their net investment is zero?