Fannie Mae Preferred S (FNMAS)

[feralcomprehension]

"...send out the clowns...."

I'm starting to believe you. A careful read of the document that Joe Stocks posted is in order: Demarco's Latest Comments

My take is that this document was crafted to lead the congressians to the conclusion that the best path is a modified Fnf. Many of the things that would be required to make his "Issuer Approach" work have been presented in a way that will appeal to those in power: (""This type of structure requires a significant amount of regulatory safety and soundness over sight to protect against the moral hazard associated with providing a government guarantee. It also relies heavily on federal regulators rather than private investors to measure risk and set the capital needed to absorb losses across a wide array of possible economic environments. " More government, more power, and a reliance on We Smart People in Congress.

Contrawise, many of the disadvantages of the "Securities-based approach" are things that should scare the crap out of any politician not term-limited: "More volatility in the price of mortgage credit... Amount of capital available... A non-government guaranteed secondary market might not be available for all borrowers..."

Could well be he sees what we see- the best path is a modified version of what we had.

Joe, thanks for the link; Tfud, thanks for continuing to beat the 'Demarco is misunderstood' drum. Y'all should drop by the googleboard at some point.