Replies to post #536840 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

the case I suggest is that F and F be required to have a core capital amount that is likely to protect them 90-95% of the time (some one smarter than me does the math). The treasury backing is there just in case as re insurance
normal
standard
not that expensive if the underlying company has a lot of core capital

Summary

To be certain of no default we could require 500B of core capital

but instead the idea is to require enough for 90+% of the time or maybe 95% of the time (to be 95% confident there is enough is a better sentence maybe)

Then the GOV re insurance - guarantee is low cost to F and F

[jeddiemack]

I guess donotunderstand is appropriate here.

The point was at some point, you got to put a stick in the ground and move on. Make up your mind. People can't protect against every risk and every thing that could go wrong. Sure do the best you can but be reasonable. and get on with it already.

The point is, these people are posturing over things that just don't matter. You can't insure against the world ending cause if it does, then, there are bigger things to worry about. Economically, so while sure housing values dropping 80% would really suck but there would be other things far worse than a few million busted mortgages.

So, lets not lose sight of what is important and get on with it already.