Fannie Mae, Freddie Mac Phobia is Madness

Fannie Mae, Freddie Mac Phobia is Madness by Glen Bradford

The purpose of this article is to illustrate the cost to wind down Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) is so great that it’s not really a tractable solution and as such, the equity is severely undervalued. The idea is that the cost of wind down is so large that, as we are seeing, billionaires are getting involved and setting things straight. Politicians love to see what they can get away with, but this time they have bitten off more than they can chew and the analogy is like a minnow trying to swallow...