Replies to post #231400 on Fannie Mae-No Politics (FNMA)

[Blushing green]

What counts as a purchase? The first number of shares or do they set a target and then once they reach that target they have 10 days to file?

[HappyAlways]

I have a simple all-win proposal to Obama. I am sure the proposal is easy to implement and is beneficial to all parties concerned. Problem is how to submit that. Can anyone do that for me, as I am not a US citizen ?

US Treasury:
• provides $121B to rescue Fannie & Freddie
• original terms: 10% interest rate on bailout money
• original terms: 80% Options
• new terms (5th Amendment): 100% on profit

Current Status:
• Fannie & Freddie paid back $125B already
• Mortgage market is back to business
• Some lawsuits that the 5th Amendment is unconstitutional

All-Win Proposal:
• Fannie & Freddie to repay the $121B according to the original terms
• Treasury to sell off the 80% Options in the market to make $400B
• Form a Mortgage Market Reserve Fund of $400B to protect against similar mortgage market risk

Who wins ?
• Government Win 1: 200% returns on bailout money in 6 years to Treasury
• Government Win 2: Government guarantee to mortgage market remains implicit
• Government Win 3: Lower government risk with the Reserve Fund
• Public Win 1: Lower government risk
• Public Win 2: Low mortgage rate continues
• Public Win 3: Liquidity to mortgage market can be ensured
• Common Stockholder Win: Stock value loss can be reduced

[Watch dog]

Thank you for taking the time to teach us this.