Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Fannie Mae's wet noodle

|Includes: Fannie Mae (FNMA)

     All over the news now is Fannie Mae's stated intention of a 'death penalty' for strategic defaulters: Anyone walking away from a mortgage they are judged to be capable of paying will be barred from obtaining credit through that agency for 7 years.
   Big Deal.
   Fannie is overestimating itself. Again.
   In seven years, Fannie Mae will be Dust, and virtually No One will be getting credit, for much of anything, especially real estate, putting all those "locked out" defaulters on pretty much the same footing as the rest of the country. 
     This is a demonstration of yet another government endeavor that is out of ammo, and now bluffing with blanks. I just wonder if they are smart enough to know it? Based on the record so far, I am going to guess not. 

Disclosure: No positions