With all the mortgage crises is GMNA still a good investment?

Question

If you had $100K to invest, would Ginnie Mae funds be the best investment? How would the gov bailout of mortgagees affect GMNA?

Answer 1

The payments are guaranteed by the government, much like treasuries, and GNMA's have been doing relatively well this year.  They have a fair yield at about 5.5 percent.  I consider them a pretty safe income investment.

Answer 2

Absolutely not. I would never put all my eggs in one basket, and certainly not in mortgages.

Buying a foreclosed home 50% below market might be a better way to invest that cash.

The gov is NOT bailing out mortgages. Any contrary media reading is incorrect. The FED is helping major banks and brokers keeping them in business.