tomzni

Fannie Mae and Freddie Mac on the Brink

Exactly the reason why Fannie would never be bankrupt or come close. FNM has a lot more tools at its disposal...given the strong demand for it's notes 3x the offering I think most investors also agree. Furthermore it's Mark to Markit, current accounting practice that is flawed. In future quarters FNM won't be using it, it would be good for the entire industry to abandon Mark to Markit in the "black swan" like environments. 2009 and beyond Financial companies will be "writing ups". Writedowns based on Mark to Markit are only temprorary.