Replies to post #226999 on Fannie Mae-No Politics (FNMA)

[cfljmljfl]

By letting gov keep the warrants.....
You agree gov cship is Legit and gov entitled to warrants.
You are awarding a horrible crime that hurt millions of citizen.
The criminals go unpunished.
From this precedents, you set a slippery slope to worse scenarios in the future.
Action recommended is Man-up.

[big-yank]

Just to be precise, I never intended to say common shares would have no value. They would have a diluted value, initially, and then probably rise substantially as the capital reserves are built up and financial health improves, over time.

If the future default risk was substantially reduced, I could even be persuaded to back off the dissolution of FnF, although someone would still have to resolve the issue so popular amongst many of you that the US government is stupid, crooked and incapable of running anything at all (not my position, by the way). There is a thin line separating the conservatorship and a return to Government Supported Enterprises which may be public companies but can only serve their functions in the housing marketplace with umbilical connection to the Treasury, Federal Reserve and Congressional support, IMO.

Your concept is not perfect, as you note, but it is vastly superior to what we have now which is conflict from a disconnect in motives between ideologues, bureaucrats and hedge fund managers.

Thanks for your post.