Fannie Mae-No Politics (FNMA)

[Bodach]

There was a change of heart by the regulators of the United States that will now allow Fannie Mae and Freddie Mac to pay back the US Treasury the money that they pumped in to keep them afloat. It's only an accounting change, but workable, nonetheless.

Fannie and Freddie are backed up by the government. That is why the bailout happened. The worst happened, and the government did it's part. Now, Fannie and Freddie appear to be profitable again.

For a long time, it was looking like they would disappear off the face of the Earth. It's not looking that way anymore. That is the speculation that is driving the price. Not a guarantee stock value some of the bashers are holding as a banner against it.

When the Treasury is paid back, Fannie and Freddie can come out of conservatorship if the political sphere continues to improve around the issue. Book value becomes reflective in stock price again.

That is the speculation. Take it or leave it. I, for one, am taking it.