Replies to post #117102 on Fannie Mae-No Politics (FNMA)

[Twos]

I too have invested a lot money on Fannie &Freddie. I have been regretting for not selling When it was $4 or $5. But, now I think it is going to work for the best for the following reasons:
1) Fannie and Freddie are going to report a large profit for Q3 and should be able to cover or exceed the remaining debt.
2) The chances of the C&W bill getting approved to replace an enterprise which has be refined and improved for the last 70 years is very low not to mention the cost and time of implementing a new enterprise.
3) There are at list 4 or 5 low suits protecting investors

[mrfence]

Good analysis Bouray00

My final conclusion was that Fannie as well as the shareholders will be around in ten years. So, I think this is not as bad of a gamble now than it was a few months back, even with the C&W bill and Hensarling's bill floating around. I think those bills have done more to raise awareness of the need for fnf for middle class finance to buy houses. I do think there will be some type of reform, but the private capital the bills talk about will probably be shareholding investors.

In fact, there may even be dividends paid retroactively after the reform dust settles :-)