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investor G

03/26/17 4:14 PM

#399120 RE: stink stack #399119

two guesses from me:

political

and

they want to have their full plan and presentation ready before discussing publicly since they know there will be media blowback

obiterdictum

03/26/17 5:29 PM

#399135 RE: stink stack #399119

Thanks for posting obi. I keep asking myself why the current Administration is being silent about the GSE's? There must be a reason why they don't show their cards? Is it political? Is it money? Is it legal ramifications? Do you have any thoughts as to why investors have to keep playing a guessing game on what their intentions are? Thanks????????

You are correct. President Trump and the Trump administration are playing this close to the vest. The reasons for this are most likely akin to the ones you stated and more. There are powerful and economic, political and social people, groups and corporations vying for various degrees of control of the GSEs present and future status and activities and for control and direction over the use of the enormous wealth they generate. There are intense conflicts between these economic, political and social people, groups and corporations. There also is plenty of opportunistic grasping for cash and business opportunities to generate cash by engaging this way and that with government and non-government entities to direct things towards the opportunists and squeaky wheels.

Since the Trump administration and Treasury, at the moment, have the best hand, the other players are concerned about that best hand and want to read the White House tells as to how high the stakes are going to go and whether or not they should fold or pull out the knives and guns. So far they have failed, as we have, to accurately read the tells. White House information on plans for the GSEs future is blacked out.

The best hand means that Trump and his administration can do an "administrative fix" of the GSEs without interference or contributions from Congressional legislators and/or private capital. They also can broker deals to push through specific legislation without the support of Democrats and can cater to the private capital players they prefer. As we know, some in the Senate and House do not want an administrative fix. Private capital of one kind or another seek to have their share they way they want it through lobbying, press releases, associations and think tanks and so on.

Because of this, President Trump and crew are keeping all their cards close to the vest so that no advantages accrue to the other players. It is GSE fact finding and learning time. They have read the tells of the other players and now they have to come up with a practical plan and play their hand.