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We are certainly in a downtrend until we reach 60 dollars PPS. Anyone think it is best to wait to purchase until the correction or downtrend is broken at 60 dollars per share?
Its funny the profit sweep was enacted just prior to the GSEs making a profit and the country hitting massive debt limits. They are living on borrowed time on many different fronts. The Judaical Chickens are coming home, to roost.
Thats another lawsuit in the making. The government will soon want this thing as far away from them as possible. Im surprised they are not getting sued from a enormous amount of people. I think most are waiting on the suits in progress. It would be much easier to let them take the blunt of the cost of litigation. Am I the only one that feels that way?
Those posted market caps are bogus.
If there was certainty, It would not be trading at 1/60th of its value.
Yelp, Paulson made the choice to go into conservatorship. Probably the largest mistake of his career. He left the door wide open for folks to profit from the 100 year event. Sadly, alot of investors did not keep their voting rights. They sold them for pennies on the dollar. When they sold their rights to those shares, all the rights, profits, liabilities, and assets go with them. Its really no different than when people purchased land during the Greater Depression for a dollar an acre. Same concept, much contempt for those that made a profit.
Name one inVestment buffet mentioned before he actually purchased?
Thats the way I took it too. The wind down of Sallie Mae used the same terms or adjectives to describe it. I think I posted it here one time before. The President is keeping with the precedent. Winding down the role of the government sponsorship and ramping up the private ownership of Fannie and Freddie. Here it is if you want to read it.
Privatization=wind down
Shareholders retained a 1:1 shareholder value during the wind down. Shareholders that held through all the bashing from negative peps, done really well.
http://www.treasury.gov/about/organizational-structure/offices/Documents/SallieMaePrivatizationReport.pdf
Yeah, he wants alot of things. Good thing we live in a country that has checks and balances.
Also, Imagine trying to cover while more institutional funds are sucking up shares on the way up. Shorts could face a total loss real quick if just a couple things line up.
They are not "all" about them but these banks have used the word signficant settlements. Fed is providing liquidity. Why? World is awash in cash. Its to help capitalize the banks on the capital ratios. I think all the big players are in good shape except BAC. They are the only one that did not settle and that purchase of countrywide left alot of bad loans on the books. FHFA is sueing them, the Fed is sliding cash to them under the table. One hand to the next. When Fannie goes to trial, everyone will see that the banks should have went into conservatorship not FMNA.
I would not want the task of pushing a stock lower that has ran over 300% and holding steady. Political risks are diminishing with each passing day. Dems and Repubs are not playing nice and that is good news for FNMA shareholders. Bad for those haters.
What makes them not great? The fact we are up over 300% YTD? Answer.
Fed continuing to dilute is all about FNMA and FMCC lawsuit settlements. The banks need more capital to stay solvent.
You summed up what many have thought. The government cashed in its last chips when it stole the equity from the homeowners. Our comments back and forth for those that pro or con will seem petty should this not work out. At the end of the day we are all in this boat together.
I dont speak gibberish. What do you mean by this? Wow seen your tag line your twitter pump site is up 50% this year. Impressive.
only up a measly 392% on the year. Trend is down until 60 dollar price per share. Historically that is the price it must hit before the multi year down trend is reversed. So Basically, we can talk about downtrends until 60 dollars. Looking forward to the downtrend reversal. Same logic different price point.
So your saying its a Contrarian buy?
Up 421% year to date. That is the news. No news needed. Thats 21% every year for twenty years. Im sure they are better investments that have ran more. However, I bet that list is small.
I answered your question with a statement. Public opinion does not matter. They take it, but they govern for the greater good. No doubt alot of folks lost homes during the crisis. Some may be here now with malice for the shareholder. Spending time pushing an agenda that they most likely will loose. Its a 100 year crisis that will result in a transfer of wealth. Like it or not, that is what it is. Had I lost a home or been an investor pre-conservatorship I would probably be unhappy as well. In short, blue collar public will is not on the top of anyone's agenda. Memories are short in politics. People just want their flat screens, a beer on sunday and football. That said, I agree with you about the public being unhappy. However, 1.2 billion shares will be outstanding and those that own them when the GSEs are released will be glad they held and those who followed but did not invest will be looking in the rear mirror with regret. I will not say that your theory is incorrect. We may have mass rioting in the streets at the mention of a GSE release. I just think it is not likely.
Our nation is not ruled by a lynch mob or polls.
”Private property may be taken or damaged for a public use and only when just compensation, ascertained by a jury unless waived, has first been paid to, or into court for, the owner.” [Cal Const, Art. I § 19].
How much would it cost to fight each case individually? Ive not sued yet. This would be one suit that I would waive a class action status in a heart beat.
That 60 day public comment issued by the FHFA is telling. That is right out of the Regulatory law standard for making a change. Public comment for 60 days, then new laws go into affect.
All show...he just wanted something to talk about during the next election. I would bet he holds shares of FNMA and or FMCC in some form in his portfolio. I would bet alot on that account.
Heres what I have trouble understanding:
Why not release them when debts are paid.
Congress can set rules after the fact via regulatory rules. Same fashion as they would say (jumbo loan amounts and principal down payments). Nothing is carved in stone. So why not release and tweak the system for efficiency.
WSJ has been negative to the GSE cause. They post bad articles when the stock is close to resistance. Done it many times. At some point you have to say...they are manipulating the PPS. Im at that point.
Any one up for a what if? What if FNMA paid back its loan first and was released. Would FMCC move in tandem with the FNMA stock if it remained in conservatorship? All the lawsuits are FNMA based. Does anyone know if FMCC has any lawsuits. The reason Im posting this here is because the opposite could be true. Many think FMCC will beat FNMA out of the debt owed.
My thoughts was this: more throughput, equals more profit. I guess profit would be the same if the GSE's follow suit with layoffs to match decreased demand. However, I see your point.
Imagine this: What if this GSE was in shambles and no one wanted to invest in it. Imagine a market were capital was locked up and no one could get loans for homes. Without those willing to take risks, the market would die. We (the investors of FNMA) are the grease that keeps the gears turning on the mortgage front. If they kill us off, who will set up to the line next time? I know I would never invest in MBS, Fed Bonds, or any munis. This would be a generational shift in investing. Much like those who would not invest in the stock market after the great depression. The Government knows this is 99% physiological. They have made a ton of money off this meltdown. They will turn us loose, but they need a good excuse to do so for the public. I think the lawsuits are the catalyst they have been looking for all this time. All that I have said here, they know. They know all to well. The only thing that may reserve their actions is the foreign investments in these GSEs. This is capital that will leave and not be taxed. That is the downside and I dont know how they will square up with that. The tax revenue alone from the release will be huge. So, dont listen to the poor mouthing about loans, unpaid bills, etc. Its been a huge money maker for the government and will continue to be so.
I dont see all these big banks laying off mortgage employees as a positive for FNMA. I think we have to be realistic that the industry is pulling back with the taper. However, I still dont think it will affect PPS since we are a fire sale prices. Thoughts?
Nice find. I also really enjoyed reading the stay of profit sweep until a verdict. Nice.
He owns a % already. Dont believe otherwise. Mark post.
No good...looks ugly.
Another African Scam. Reminds me of the emails of a rich uncle. I just need to send a couple thousand dollars to secure payment. What a joke.
FNMA is up 300% from its lows.
Mine says:
Release Fannie and Freddie or be summoned to court to testify why you voted to ignore the Constitution of the United States. The only positive here for you is frequent flyer miles and hotel points. Look forwards to meeting you. Dress nice the media might be there.
I like the statement from the congressman in Mass saying it is unfair for homeowners to provide revenue to the national debt via FNMA and FMCC that renters was not paying. Another lawsuit. Homeowners financing the national debt via FNMA added expenses and civil charges. What % of our house payments goes to the national debt via FNMA? Another tax.
Apparently, APG held through 5 bucks.
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