Replies to post #174 on Fannie Mae Preferred S (FNMAS)

[jwnoble3]

Woonded (all),

Seems to me the stronger political case might be made that the GSEs are of systemic importance and they truly only need Congressional risk reform (appropriate levels of underwriting and loss reserves).

Additionally, the ability to borrow from the World at near risk free rates (an open line of credit that no one else on Earth can tap). To shut that off does not seem like appropriate leadership.

I wonder if Milstein has the same thoughts? And if he'd share them.