Fannie Mae-No Politics (FNMA)

[obiterdictum]

It is not black and white. Conflict and confusion are usually based in ignorance, bias, uncertainty and indecision. That is the current condition of the Congress about the GSEs. All the talk about a consensus on GSE Reform is political nonsense and media spin.

Few lawmakers have a clear idea about the GSEs let alone GSE reform and depend on "leaders" in the Congress to inform them of the issues involved. Their aides help to digest the issues for them in summary reports, being busy with other things more pressing in their offices, districts and states. Then they look to what their party thinks and directs and then consider their constituencies. Finally, they craft a position so they can participate in government. If they have some way to capitalize on a position they craft, they go public with their position or even strive to create a bill. If not they wait until it is time to vote and then cast their vote in way that benefits them and perhaps their constituencies.

The article signals mud publicly thrown into the waters of GSE Reform.

Those in the know of how politics in America works, will wait till the mud settles to the bottom where it belongs. Others will jump in now and try to gain an advantage by spreading useless and speculative views about what will happen. Journalists, pundits, financial talking heads and so on will rattle and gag on about these events, turning out views, usually in the black and white variety, to try to influence public and political opinion and the share price of FNMA and FMCC. Smoke and mirrors.

However, clarity and certainty for the public at large will not emerge yet. There is the wait for the definitive White House view, which is not in, at least not for the common people. That view may be known by the powerful but it is well guarded, if it exists, and there have been no leaks. The only things being heard is that GSE reform is being considered. We still await the Watt's Senate confirmation hearings.

The most prominent Democratic view so far is that given by Maxine Waters on June 12, 2013:

http://democrats.financialservices.house.gov/press/PRArticle.aspx?NewsID=1553