Fannie Mae-No Politics (FNMA)

[401kobessive]

Imagine this: What if this GSE was in shambles and no one wanted to invest in it. Imagine a market were capital was locked up and no one could get loans for homes. Without those willing to take risks, the market would die. We (the investors of FNMA) are the grease that keeps the gears turning on the mortgage front. If they kill us off, who will set up to the line next time? I know I would never invest in MBS, Fed Bonds, or any munis. This would be a generational shift in investing. Much like those who would not invest in the stock market after the great depression. The Government knows this is 99% physiological. They have made a ton of money off this meltdown. They will turn us loose, but they need a good excuse to do so for the public. I think the lawsuits are the catalyst they have been looking for all this time. All that I have said here, they know. They know all to well. The only thing that may reserve their actions is the foreign investments in these GSEs. This is capital that will leave and not be taxed. That is the downside and I dont know how they will square up with that. The tax revenue alone from the release will be huge. So, dont listen to the poor mouthing about loans, unpaid bills, etc. Its been a huge money maker for the government and will continue to be so.