Replies to post #553149 on Fannie Mae-No Politics (FNMA)

[TRCPA]

The early returns today may reflect some long term holders who are eliminating the fact that conservatorship is coming to an end, and focussing on a change rather than an elimination of the NWS.

The new entrants into the market will probably come later armed with the knowledge that conservatorship is ending.

[Chronic The Hemp Hog]

News wasn't bad but I don't think it was what the market wanted. The expectation or hope was some plan that laid out details. As already posted by others without details no one can correctly value the GSEs. It provides a pathway to privatization -- Great! Now the devil is in the details.
To me it is just smoke screen to allow the government to keep taking what they feel they can.
It is a laughable plan because they could literally, right now, allow the GSEs to start building capital which would have an immediate and direct impact on the GSE under capitalization and yet they choose to do nothing.

[FastEddie18585]

I expect we'll see some selling at the open from panic selling and those who were hoping for a quick buck, but once it's seen that the sky is not falling the buyers will be back. Nothing in the report was bad, just short on detail.