Fannie Mae Preferred S (FNMAS)

[skibrian]

what sucks is that a former OMB (office of management and budget) treasury secretary would also know that GSE's could be a huge source of funding for government spending.

has anyone considered this scenario?

the GSE's are subjected to more and more and more g-fee increases that are really taxes on new home owners to pay for government spending. at the end, the g-fee increases make it so that private capital begins to be interested in writing mortgages. slowly, the risk of underwriting a mortgage gets priced in, but the new revenue, which drops to the bottom line, doesn't, it gets siphoned off to the treasury (just like the payroll tax).

funny enough, grover norquist, mr. right wing anti tax actually approved of this plan of a new homeowner "tax" in the form of a cleverly worded "g-fee" to the public. if I recall, his rationale was that the homeowner tax was actually better than the government subsidizing housing.

we are still in a mess folks...huge profits make it worth the risk for me, but the end hasn't been written which is why we still trade so low (that and dividend suspension). yes, there is room on this board to look at the pluses and minuses, and we should.

for now, I'm holding. place your bets folks. I'm still scared, but optimistic by nature, and frankly, I'm all in anyway, so WTF, let it ride....