The past is obvious:As famous money manager Bill Miller, the chief investment officer of Legg Mason Capital Management, wrote in a recent letter to his investors: “When the government pre-emptively seized [Fannie and Freddie] not because they needed capital and could not get it, but because the government believed they would run out in the future, then shareholders of every other institution that needed or was perceived to need capital did the only rational thing they could do—sell, in case the government decided to pre-emptively wipe them out as well.” http://www.vanityfair.com/politics/features/2009/02/fannie-a...The future is not.I believe FRE and FNM are going to survive as private corporations, probably in a public-utility format. Their common may or may not have speculative appeal at roughly 80 cents per share. If they do, then the preferred stocks of each enterprise are more appealing.Mark
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