Replies to post #483181 on Fannie Mae-No Politics (FNMA)

[schaub]

Unfortunately I think you’re correct. This could have been taken care of within the past 2 years. All smoke and mirrors.

[YanksGhost]

The SPSPA is coming down because it HAS to. There is no other viable option for Mnuchin.

[YanksGhost]

So far I would have to agree that Mnuchin's pace has been like that Pixar digital film with the infamous sloth behind the service counter at the DMV. But self interest rules inside the Beltway, and Mnuchin is about to face his biggest challenge since his appointment: a Democratic majority in the House who controls all matters budgetary and monetary, and growing signs of steadfast pushback against all manner of Trump agenda items like the Mexico Wall, huge military hardware spend, troops manning the border and so forth.

Mnuchin has a lot more demanding boss than Geithner had in Obama whose lone off-the-books need was funding for ACA subsidies which were only partially offset by tax penalties for the uninsured. Mnuchin is going to need a LOT of help to survive the brewing onslaught on budgeting to fund Trump demands. That means one thing only: jettisoning that $258.1 B annual contingency liability for open commitment to the GSEs is the HIGHEST PRIORITY HE HAS and which requires ending the SPSPA other than warrants.

Hope remains for shareholders here because Mnuchin HAS to make this change in order to survive. Reminds me of the old adage about "politics makes for strange bedfellows."