1 Thing You Shouldn’t Forget When Buying Fannie and Freddie

The future of Fannie Mae (NASDAQOTCBB: FNMA  ) and Freddie Mac (NASDAQOTCBB: FMCC  ) is still very much up in the air. As bills swirl around Congress and speeches are made, the time frame of when change can be expected is becoming less-clear. In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analyst David Hanson is joined by Motley Fool One analyst Morgan Housel to discuss why it's important to consider the time value of money and alternative returns before investing in Fannie Mae or Freddie Mac.

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  • Report this Comment On November 12, 2013, at 6:30 PM, econdata wrote:

    Mr. Hanson, I am glad to see you writing the one thing....

    instead of Don't buy.

    Charts don't lie is the only reason I am in besides the fact that billions are being served.....

  • Report this Comment On November 12, 2013, at 7:19 PM, saintmarket wrote:

    Don't be afraid of the fannies, they are not under any bankruptcy chapter and doesn't belong to Venezuela. Sooner or later they are going to be release from conservatorship.

  • Report this Comment On November 12, 2013, at 8:24 PM, thombiz wrote:

    Fannie and Freddie have paid back the money used to save the banks from catastropic failure. FnF are now sound and functioning properly. That should satisfy any court in the land with regard to taking them out of conservatorship. If the senators and representatives out there want to shutter them, then they have to buy Fannie and Freddie first. Otherwise, the companies are the property of the owners and not the senators or representatives property. If the can't give up the hold on Fannie and Freddie, then the 5th ammendment means I get fair market value and the assets and intellectual properties are very very valuable.

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