Fannie Mae Preferred S (FNMAS)

[Joe Stocks]

i think a leak about something serious would have these at 50 cents on the dollar..

I am thinking along the same lines. The high volume with little movement in the shares has me thinking the market maker is playing games trying to pull in buyers at higher prices for a setup. If there were positive leaks the prices would be higher. If the leaks are negative, and the market maker would probably know, he could still keep prices high as he unloads inventory, until he can no longer draw in buyers. The small run-up we have had going into this release of a plan has me nervous. Let's face it, what we said in that article about a new plan is damaging on the surface.

The panel will recommend that the U.S. replace Fannie Mae and Freddie Mac, which package loans into securities with guaranteed interest and principal payments, with mortgage-bond guarantees that kick in only after private firms take the initial losses, according to the people, who asked not to be identified because the report isn’t yet published.

...The report will suggest government guarantees could come from a new entity similar to Ginnie Mae, the U.S.-owned corporation that currently backs bonds with loans insured by U.S. agencies including the Federal Housing Administration, the people said.

That entity could replace Fannie Mae and Freddie Mac, which were publicly traded companies with no explicit government backing before they were seized in 2008 after investments in risky loans pushed them to the brink of insolvency. The two companies have since drawn about $190 billion in taxpayer aid and paid Treasury $50 billion in dividends.

"were" publicly traded? Okay...we still owe about $130 bil. Hard for me to think they will come up with a plan at this time favorable to us with that kind of amount still owed to the taxpayers.