Fannie Mae-No Politics (FNMA)

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One last dose of reality for the evening. For those that believe the Treasury would never do anything to screw the investors. Click below, it's from the Federal Reserve. If you don't want to read the whole thing, below is the most important paragraph.

In September 2008, the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac were placed into conservatorship and dividend payments on common and preferred shares were suspended. As a result, share prices fell to nearly zero and many banks across the country lost the value of their investments in the preferred shares. We estimate more than 600 depository institutions in the United States were exposed to at least $8 billion in investment losses from these securities. In addition, fifteen failures and two distressed mergers either directly or indirectly resulted from the takeover.

http://www.federalreserve.gov/pubs/ifdp/2012/1045/ifdp1045.pdf