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I get your logic but nothing logical about this trade. We are dealing with government and so far they are batting 1000 at being idiots.
This seems like good news! Now all we need is when! I own POTN as well and it looks like they are on the winning side of a legal situation and cause for share price to rise.
Help me understand "when there is no one fighting to defend them in court" when the Collins case is before SCOTUS and one of three of the Collins plaintiffs is a common shareholder. Your statement does not make sense to me.
What can be done about it now that nobody has challenged the warrants and the statue of limitations have run out unless the exercise of the warrants starts the clock again.
One little problem. They are in conservatorship.
Likely to be worse for the world markets as virus appears to be getting new foot holds
I would agree with Bradford on this! Why would you want both classes.
Agree with the Chessmaster. As P shares SP is flat and institutional investors keep pilling on to commons who have a dog in the legal fight welcome a long capital build period if necessary. As stated thousands of times it only take one court win and we commons win in the end even if that is five years from now.
Soon they will be pulling down their pants. $4 in sight now. Doubtful even you day traders who got out too soon can stop this momentum.
Should state December 6, 2019
Thanka Ano for your input
I doubt that is true. Warrant have not been exercised and would not be ripe for suits until then. New suits can develop if they exercise one non voting shares. Even if they did try to exercise, do you really think anyone one would buy non voting shares.
Means they need to stop stealing from point or ruling forward but it does require UST to return what has already been stolen.
and the capital raise will not be possible until the warrants are settled. There is too little capital if there is warrants.
I was thinking that as well!
Great point! The $187B was TARP money borrowed from the taxpayers. Now returned plus another $100B more where is it. Most was spent on ACA which was never appropriated by legislation. Shareholder are being force to pay for others healthcare though the vehicle of theft. Taxpayer never got paid back because they spent the money on ACA.
Chessmaster - Tim Howard states "Fannie and Freddie never did buy any “toxic…mortgages from the banks’ portfolios,” although there is credible evidence to suggest that it was Treasury’s intention to have each company buy $10 billion of these loans per month as part of the toxic asset purchase program it said it was going to undertake after TARP was authorized by Congress. Treasury never could figure out how to design and manage such a program, however, so it substituted a “voluntary” bank capital infusion program instead, and Fannie and Freddie never were required to buy toxic mortgages from banks post-conservatorship."
I think what he says maybe both true and false. In the height of the housing crisis the GSE's was basically it in providing MBS's which government rammed all that $187B down there throat whom might without those funds might of not keep the liquidity to the degree it did because home prices were spiraling out of control. Lets not forget FHFA was in charge and forcing the GSE's to loan money they would not otherwise do without the $187B.
Warrants do not automatically expire until 2028. The only thing that happened is Trump can do what he wishes starting today with the warrant i.e. exercise or will in part or whole.
Capuano is a Democrat
Why would the government exercise warrants to provide capital? Answer is they will not!
Wondering where you went Missing-Z-Ride. Your a good luck charm. Every time you pop your head in here the SP goes up. Please come back again soon.
Odds of Trump continuing what Bush and Obama started are zero. Odds are Paulson will be made whole who backed Trump when nobody else would which will affect all classes SP since receivership is no longer possible. Chart says your $2.70 short is doomed. I would not short this at $10. This is going to blow the roof off the house!
The last several sweeps the SP was in decline up to the sweep and continued down for a few days that followed then went back up. Not this time. It was moving up to the sweep and now after the sweep. Market saying it does not matter what happens. Something got to change and there choices are limited.
He will not say anymore then what hes been saying. He will tell the congressman to shit or get off the pot or he will be forced to act. I doubt he will go into what he and UST been talking about. Market just behaving on the inevitable which is still months away. Trend is green and appears it is going to stay that why but that is not to say there won't be ugly periods. You just have to decide if your going to suck it up of take a risk out and the dam thing gets away from you. Choose wisely. Smart money will just keep buying IMO.
Actually Author been right more then you! Going up!
Yes Mr. Arrogant but your forgetting to mention he is one of only a few that writes articles and is the plaintiff in the important Delaware suit. His writings present good though and what happened. One would one have to read his articles to understand the depth. I agree people do not want to give this issue much consideration. They believe it is a dragon that can't be killed and nobody would care anyway. Well the point Hindes makes is a valid one. The theft of the GSE's is what cause many to loose there home and there jobs, and may very well be what cause it again if the government thinks there is another solution that screws the shareholders. This about it, homes are once again at there value before the crisis, the country is not doing well nor many of its people. Once false step and like screwing the shareholder might tighten up liquidity just enough to change the trend for sometime. Then people would pay attention.
When it comes it will be presented as if warrants will be exercised. Then they will get reduced but not exercised to raise SP. Those warrants will slowly disappear at the same time new shares will be issued with the excuse to raise the value of the remaining warrants which will be done repeatedly until they are gone knowing it is the only way the GSE's can survive, pay off its debt, and provide rich tax revenue rewards for the UST which outs the liability SCOTUS rules gov action was unconstitutional. The path will be a win for all and not we are now going to continue this theft because of Harvey. Open your eyes. Only one path.
Warrants were a deal by the government to the government. So your telling the US government will get away in the long run of faking the need to borrow $187B and as collateral warrants worth 79% which the companies paid back all $187B plus interest blah blah blah. Point being if the gov cashes in on the warrants for Harvey then I ask again where does the capital come from for GSE's? In short they would never have the ability to raise capital and pay off deft. Plus what your suggesting would have to done legislatively which will never happen.
This gets done administratively by simply reversing the net worth sweep. HF will climb on board kill suits with promise some of the profit will go to paying off debt though re-issuance of new shares that likely double the outstanding shares.
Gov will realize they can make $50B just in tax revenues plus this will create thousands of tax paying jobs. Who would by those none voting warrants that would be litigated for years? I will tell you! Nobody! Why would they if the government can get away with this. The only way possible would be the government to guarantee they would not do what they did again in the future which they can not. There is only one way so open eyes. Mnuchin said he is getting gov out.
Warrant are illegal and will never be exercised. Where would the capital come from if warrant were exercised. This get done administratively by simply stopping the NWS, releasing, and building of capital which will likely take the form of reissuing new shares. Otherwise, the court cases continue to supreme court where the government looses there ass putting a huge liability burden on the taxpayers.
Missing-Z-Ride, looks like bottom to me. Up another nickle by end of week. You should short more going into 3 day weekend because your $2.70 short is under water and that is where it will stay. I seen this many times before like the frog in the pot of water you are cooked.
Think about it, seven weeks in a row green never seen before, shorts leaving, big blocks vacuuming up all the day traders and weak hands, thousands of docs worth of damming evidence still to be released and even more damming material still being challenged and likely to be handed over. Rope case on a fast track for summary judgement and in a more favorable court. Crazy to get out after 7 weeks of green when $50 is in sight.
Missing-Z-Ride, the trend is your friend. Slow, painful, short death in the making. My guess is you were forced to cover. Next you loose your new house.
Missing-Z-Ride, how is the short doing. Best get out before this goes over $3. This is only going to pick up steam over the next month. Smart money buying week hands. Notice the big blocks.
Missing-Z-Ride showing his frustration. Six weeks in a row green. FNMA up 25%. Buffer nearing, Watt time is getting shorter, slow painful bleed of evidence must be frustrating to shorts. Shorts doubled down on Friday at 25% of volume and the SP hardly moved. Next week will be another bad week for shorts.
MissingXride - Just resting here before the next leg up. Should be a big one this time. Time for you to short more.
missingZride better short some more so he can loose it all before the next group of whales jump in.
Slow bleed of docs and time only works to the advantage of both classes. The short party is over. You better unload your short position before you are broke.
MissingZRide not happy! Going up! $2.85 by Wednesday! $3 the following week! Bye bye!