Replies to post #404764 on Fannie Mae-No Politics (FNMA)

[rekcusdo]

Note, this isn't gospel, just my opinion.

But what my opinion is is that the government has "broken" the worlds confidence in a publicly traded housing market.

It has been my opinion that the GSEs will not survive the turmoil that they've been thru in the long run. Even if the NWS ends and even if Conservatorship ends, it is likely that the government is going to eventually create legislation that will create some sort of explicit guarantee to a government-backed program. This will eventually wind down the number of mortgages on the GSE books. Institutional and Private investors will follow the new company and the GSEs will become a minor competitor.

This is just what I think is going to happen in the long run. By then, I'll have sold one way or another, as will have 99% of the people on this board and in the lawsuits.

As support for my claim, I would ask those here a hypothetical question:

This shoots to 100 dollars tomorrow because an announcement ends the NWS and Conservatorship.

Do you hold under the assumption that the companies will continue to grow or do you sell under the risk of what will happen to the GSEs in the long run?

I know what my answer is.