SilverLeaf

Frannie's Future

Interestingly, I believe that the the Fannie/Freddie common share prices will now directly reflect what the market perceives will happen to Fannie/Freddie.

2) If the market thinks they will go private (via merging, splitting into several entities, etc.), the market will believe that current shareholders will benefit - big time.
3) If it thinks that the GSEs are nationalized, then the stocks will tank.

So perhaps there will be some classic George Soros-esque reflexivity action going on where, the stock prices may impact perception of what will happen, and speculation on what will happen will impact stock prices...This drama is nowhere near over!

Make your bets accordingly.