Replies to post #491560 on Fannie Mae-No Politics (FNMA)

[kthomp19]

I got intrigued by the sudden jump, so came on to see if there was any new news, but not seeing any.

To me, the big news of the week was Otting's interview where he says that getting the companies out of conservatorship is a goal of the administration. I have taken that to mean (when Mnuchin has said it in the past) by the end of this presidential term, because Trump and Mnuchin aren't guaranteed to still be in their offices past January 2021.

Of course, Calabria will still have 3 years of his 5-year term left at that point, but the Collins case might turn that on its head and give the next president (if Trump isn't re-elected) the power to fire Calabria at will. I think the administration knows that if it's going to release the companies, it needs to do so in the next 2 years.

The market is a fickle mistress though: my "big news" coincided with a price drop in the commons while the prefs caught fire. I think the big common rise earlier in the week was likely speculative buying with Watt finally being replaced by Otting.

[HoldenWalker99]

That's right - I just knew that you had a very patient timeline.

You're not missing anything here. Hearts and minds aren't open, so it's just a waste of time.

On that note, thanks for your input over the years; reading your posts (particularly the ones where you schooled my ass when I first invested a few years ago) persuaded me to modify my position (common to preferred) and it has saved me a lot of money.