Replies to post #733408 on Fannie Mae-No Politics (FNMA)

[JSmith5]

.25 is still very likely.

Profits have little to do with the price of this stock.

The GSEs are in solid shape especially going into this downturn. Approaching a combined $100B cushion with few of the older, riskier loans on the books.

I don't see too many walking away from their 3-4% mortgages when interest rates are north of 6% and climbing. And prices have risen so far and fast over the last 3 years that most folks still have a lot of equity and will make every effort to pay their mortgages.

Not saying rising unemployment will not impact the mortgage industry. But remember that the GSEs are in the business of insuring existing mortgages that others have issued. So if there are fewer new mortgages the GSEs may certainly make less money going forward, but as to massive losses - that just ain't likely.

Also not saying that there is no chance the price is not going to .25 - but its not so much related to the housing downturn as to our prospects of exiting the zombie conservatorship.

Did they set a new date for the pretrial conference? As far as I can see the trial is still on for October 17. I will try to attend at least one day - but I need to put my leave plans in early.

Nats

[jcromeenes]

We'll be fine. After all these years of the government running the GSEs as conservator we are in excellent financial shape. The government has us in the best possible shape. Did I mention I have a bridge I can sell you as well?