Replies to post #9010 on Fannie Mae-No Politics (FNMA)

[gravytuna]

In my opinion, the US government dumping their shares would only cause a short term dip.

We have to keep in mind that China and several banks around the country have stock in Fannie. Wiping out Fannie would have dire consequences for a number of banks with poor balance sheets and would surely be a detriment to our foreign relations with China.

Fannie will rise.

[sevenOdouble]

Thanks for the reply.
But if the government dumps there prefered shares, they would rather do this when the SP is higher than it is today IMHO, correct me if I'm wrong.
So there's a change they will "manipulate", or make the investors believe that FNMA & FMCC won't get privatised to drive the SP up, and than dump their load...

Nonetheless GLT'YA