nobody will buy the bonds back by mortgages, due to political climate like wars, bad management like our recent housing fiasco and no guarantee...insurance cant insure 6 trillion in mortgages...these politician are blind....jmho
No? And why not? Why cant they if the Feds just stamped FDIC on them? It's just ink and it will allow the Feds to decide wether your a deadbeat or not. Heck they are doing it with your health so why not your home? GOT IT ?!?!?!
Even if your wishful thinking takes place, the commons cannot be cancelled unless they are exchanged with shares of new issue. This shows that you are either very ignorant or very determined as a paid basher. I think the latter is true.
after all housing has been through and finally recovering now, no one is gonna want to try something new. it could make things better, but way too risky for politicians. politicians have fixed things so far so they are the heros in their own minds. this is what makes America such a great country.
Will be spun off or winded down like demarco said to another type of government backstop for mortgages. Fact is the government will move swift to dismantle them as soon as taxpayers are reimbursed for there loses..
There is no dismanteling ever discussed, even by the worst enemies of F & F. At worst they talked of winding down. According to recent De Marco plan designed to help the ultra-conservatives and their big banks sponsors, segments of the F & F operations will be combined in a new entity with F & F funding which can be sold later to private interests (to their sponsors they hope). This is the worst possible plan which includes many iffs and buts, but even under this worst plan which has a small chance, the F & F shareholders will get paid with the proceeds as they would be the shareholders of the holding company, Fannie Mae.
From here onward, given today's 10-'K and the positive outlook and prospects for Fannie Mae with continued profitability and advantage of tax benefits, FNMA shares will continue to achieve higher and higher value. So even if the new spin off entity is sold sometime in the future (2-5 years from now), the FNMA shareholders will realize multiple value of the current price. If anyone wants to prove me wrong, post something of substance with actual facts and data.