Fannie Mae Preferred S (FNMAS)

[Lake of the Islands]

Latest events




What could be happening now.

Considering the lastest turn of event certainly raises questions. The large run up in share price followed by big names promoting preferred shares F&F. The prevention of DTAs. The replacement of Demarco with the nononation of Watt.

Here is a question. If all profits above 3 billion dollar are givin to the Feds, how does F&F pay down their loans?

I must speculate that the Feds saw what income both companies would soon be producing thus change the established agreement and would take all profits above 3 billion which by the way wouldn't be considered as pay down of principle.

The latest share price run up due to DTAs, lawsuits against the big banks and the turn around of the housing market bring to light what cash cows F&F are to generate money for the Feds and not the share holders. So for financial and political reasons, the Fed will use its power to retain the wealth of F&F. I believe it will have to come to either a lawsuit or a major player media push to release F&F.

Watt. My opinion is that he has two purposes. One, push a political agenda. Second he is buddies with the big banks and will hurt us by accepting pennies on the dollars to settle the pending lawsuits. This will allow his banking buddies to get off with minimum pain while allowing the Feds to continue to control the housing market with the added bonus or raking in money to themselves and not the shareholders. This will leave us to sit and spin.

So, how can F&F pay off the principle if the Feds confiscate all of F&F profits above 3 billion?