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To: JMD who wrote (1920)	2/13/1998 5:59:00 PM
From: Diogeron	Respond to of 10852

Mike, let me give you a case in point to reinforce your thesis. Freddie Mac has been one of my clients since 1982. I went through the transition with them in 1986-87 (as a communications consultant/trainer) when they became a stockholder owned company (Buffet and Kaufman are on their board). If you had bought Freddie at the IPO (or many times since), you would have made a killing. I just wish I'd been in a position to invest more at the time. Granted, Freddie and Fannie are a bit of an abberation (although they do have Countrywide and others as competitors now), but your point is well taken. As it stands, many people continue to think of Freddie and Fannie as "government agencies" although they are not (Business reporters screw this up frequently); rather, they are actually GSEs, or Government Sponsored Enterprises but they are stockholder owned. Sallie Mae's recent "privatization" also is instructive here, but I'm afraid I'll go off on a tangent if I get started on them (also another client). In short, I think you are correct. This is something to watch because people don't understand these beasts until the smart money has loaded up.