Freddie Mac-No Politics (FMCC)

[pablocruize]

These are the two articles most encouraging. Legislature's and Presidents can propose all sorts of things but the US has a built in brake on easy passage of any law. As the Moody assessment shows their observation is passage of reform anytime soon is not going to happen.

With each quarterly GSE income statement in the billions the rationale behind the shareholders lawsuit grows stronger. While the case for liquidation grows weaker.

When the Henserling/Croaker approach fails (its seems impossible to imagine a legislature that can't pass budgets being able to agree to take down entities as massive as Fannie and Freddie) the only reasonable option left is to re-privatize.

As other have stated on this board share price will jump to a much higher ask but under this scenario the fall back of June seems unlikely to take place a second time.

http://www.dsnews.com/articles/report-gse-reform-wont-take-shape-for-another-few-years-2013-07-29
http://dealbook.nytimes.com/2013/07/29/hedge-funds-suit-on-fannie-and-freddie-may-spell-trouble-for-u-s/?_r=0