Fannie Mae Preferred S (FNMAS)

[rosen62]

No need for this kind of exchanges, if I may intercede, extensive to SA.

We are all free to buy and sell according to our perceptions and interpretations. There are reasons to be scared and LD acted on this. But there are just as many reasons to keep holding. So no need to attack him. Those who keep holding must have strong reasons of their own to which LD's arguments will make no dent. Thus, his views may become less threatening.

I, for example, tend to think that the Corker bill has simply introduced some noise.

We cannot ignore the fact that politicians are practical people that will avoid hurting groups who they may rely on for either votes, campaign funding or any kind of support. From average joes to sophisticated hedge funds and everyone in the middle. Just the fact that this draft has gone from nuking evil speculators in its original, nasty form to admitting a payout to the Jr. holders respecting the principle of absolute priority is an incredible -repeat, incredible- progress, coming from -no less- senator Corker. Some slap-in-his-wrist must have occurred for such a change. And this piece of information should also be noted.

What also needs to be stressed is that -aside from a few name changes that Cat doesn't like- the proposed mortgage system is very similar to the current one with the government backing guarantees either by the Treasury or the FMIC and the securitization done by certified agents. People, this isn't an overhaul! And in that context, specially since it is now in writing, the Jrs. are money good.

As the GSEs continue to produce great profits for the Treasury and continue to approach the Net=0 finish line more concessions may happen. Just don't forget our beginnings when at 2c on the dollar the GSEs were basically left for dead.

As for the lawsuit, it could still be dismissed or be narrowed to damages to those who sold. So no great threat to the Treasury or Congress in the near term. Receivership, according to this bill is NOT the end of the world for us.