Replies to post #114564 on Fannie Mae-No Politics (FNMA)

[Sogo]

That's my one fear here too. One just should never underestimate the power of congress to do illegal and stupid things for their donors. It's just a risk here.

[~ NT ~]

Its not impossible, but its VERY DIFFICULT to do it.

It would be time consuming + expensive + have an adverse effect on the housing recovery. Thus such a replacement is easier said than done.

Its actually easier to leave FnF with some modifications (backstop govt/private mix, stricter loan norms, etc) IMO.

Obama used the word "wind down" which could mean a lot of things (see my post history, I have all the terms that it could mean in a post), which includes 'restructure'. Media is pushing the word 'shut down' for obvious reasons. Thus Obama left a lot of room for himself to work with.

[butoft]

That's what a lot of people are afraid of and why volume is dead. Same thing happened to GM where they started a new GM with new shares and the other ones were cancelled. I know they actually went bankrupt and the GSE's are in C-ship but still never underestimate the power of Congress....