Fannie Mae-No Politics (FNMA)

[philipmax]

bmp152, Great observation. I too have been giving this QE3 a jaded view. The only difference, as I see it, is that the $85B goes directly to the banks to extricate them from illiquid positions.By purchasing the garbage on their books at par, the Fed is hoping that the banks will release this "reserve for loss" provision on the balance sheet. This maneuver generate immediate profit to the BANKS and should stimulate lending (should not would). How are FNF affected here depends whether the FED keeps these mtgs on its own books or discounts them again for FNF benefit. Otherwise I don't see the FNF play in the QE3. Please clarify. Thanks in advance.