Replies to post #374055 on Fannie Mae-No Politics (FNMA)

[sebCS]

Makes sense but why would they have to wipe commons to do this? Commons are still equities. Wiping them means you are robbing the owners of their share of the company.

[TradeSmart.ai]

Also add this to a possible STICKY with the other info, thanks. $FNMA

[stoxjock]

" It is also likely that the near junk bond status of the Federal debt, as it is retired and gets reissued, will be at so costly a higher interest rate as to render the government insolvent. "

I didn't understand this point, Could you please provide more detail? For whatever reason, the US Treasury Debt is still being bought off enthusiastically by other sovereign nations at 0.25% interest rate...So, how is it "Junk Bond Status"?

[sebCS]

Sorry, so if it's likely they will make a new offering, doesn't that make investments into the current commons and preferreds worthless? Would their value tank? And why would they have to wipe them as a result?