Replies to post #16164 on Fannie Mae Preferred S (FNMAS)

[europegoodold]

Jekyll turned to Hyde after the AIG ruling failed to give the stock a boost. No convincing reason to switch from love to hate. May 15 -May 29 was the first significant increase in short interest since February. The short thesis had merits one year ago when the commons couldn't break through $ 4.80. The prices today are simply this low because there are not more buyers; and that's because too many people have been f@?%&d for too long and too many times. And the sideliners expect more disappointements and with their stubby fingers they count Lamberth, Wheeler, Sweeney... Could be, or not. Not this year though if the line 2008 (c-ship), 2010 (delisting), 2012 (NWS), 2014 (Lamberth) continues... Do what you please, I bought a little more last week. Why? Did anyone notice that all the crooks in this case are male, but Justice is a female figure...

[NobodyFromNowhere]

My research now has FNMA and FMCC as perfect shorts. There is no value as the plans in Washington have come to be as follows

1. New Fannie and Freddie business will be merged with FHA and run as always w/ FHFA as regulator.
2. Old Fannie and Freddie books of business will run off over time and continue as they have been. All risk and net earnings going to taxpayers.
3. The common securitization platform will distributed to each of the 10 federal home loan banks. The 10 CSPs will be capitalized and run just as FHLBs are currently.

Old shareholders get zero. It will be an easy and smooth transition.