Replies to post #467276 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

Thanks for the support. The utility plan as Dworkin envisions it is the breakthrough everyone has been waiting for during the last ten years of anxiety and insanity.

The explicit government guarantee, which is paid for in the crisis fund by all MBS originators, would greatly reduce the amount of capital standards held in reserve just to cover extreme emergencies. This would enable banks to loan more before needing FnF to relieve their balance sheet to meet stress test targets, and allow FnF to reach greatly reduced "safe and sound" capital levels without huge secondary share offers and massive dilution concerns for shareholders.

I only wish we can muster some support in unison for the concept, replacing the "my way or the highway" adamance being played out in the Moelis vs. Average Joe vs. Postcard vs. Commons Cancelled vs. Benzinga war for supremacy being waged on social media and blogs and investment websites like this one.

All anyone has to do is read Tim Howard's work-up on adequate recapitalization to comprehend how the utility model benefits ALL shareholders.