Fannie Mae-No Politics (FNMA)

[bmp152]

I can appreciate that stance, javachip.

I'm just afraid that once Watt would get the post, the urgency to initiate reform would subside. Why end the current cash-cow status of the GSEs?

Aside from a few select Democrats, I have not heard an overwhelming chorus for maintenance of FnF. They all agree on access to the 30-year fixed and an explicit govt guarantee. That's about where the commonality amongst Democrats stops. I could really see them bleeding FnF dry by keeping them in conservatorship and using those continuing dividends to fund the new mortgage market (whatever that may ultimately be). Once their use with FnF is done, they will liquidate or severely wind them down, screwing shareholders in the process.

All just my opinion. At this point, as many of you have stated, shareholder's interests are at the bottom of the pecking order, save for the pending court cases.

An extremely tricky one to predict at best...