Corporate Cushions and Lazy Capital

Past performance is not a guarantee of future performance.

I remember a time when Fannie Mae (FNM Quote) was a failed financial company, viewed no better than a savings and loan during the lending crises of the 1980s.

The FDIC and Congress worked through the savings and loan debacle, while a restructured Fannie Mae provided much-need capital and liquidity for the financial lending system. Those shareholders who were patient with this stock saw it move from a low of $2 in December of 1987 to a high of $89 in December of 2000. ...