Fannie Mae-No Politics (FNMA)

[mikar]

The problem is Mr. Mayopolous hopes a resolution comes "sooner than later". We all know how the Gov't can drag it's feet.
The fact is that because of the profitability of FNMA, it is now a very complicated situation. It just seems that the Gov't will milk FNMA for every dollar it can get. That will help the preferreds but not the common shareholders. Hence, the rally is in the preferreds.
And no one likes to hear it, but as it stands right now, owning the common shares is like buying a lottery ticket.
At .75 and dropping, the common stock is telling you that, plain and simple.