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Uh, me thinks it going to unroll a lot of things as it sort of criminal. That will put that heat on the other two players and any joint efforts. Me thinks it will cascade and wipe out warrants and maybe return stolen capital too. We only received one sweep and me thinks it due to the committee asking and hearing that the twins are in worst position then before the housing bust. That bad or question loans are back again. If they know this sh1t then why not plug the hole. Oh that right, it's the banks again.
Nice example. I always say that tax implications should be considered on any investment activities.
Well they are retaining earnings to build capital and he pretty much said you can't pay legal penalties with the money so there you have it. We are on the exit path. Why the down share price must be due to something else. Maybe the political theater effect.
Sounds crazy. Me thinks if those monies were put in an tax deferred 401 type and should be rolled over into an IRA account. Deferred means you hold off paying tax until you draw on the account. If those 401 monies are not directly rolled over into the IRA you may occur a lump sum tax payment and if not of eligible age a penalty. The 15% tax rate in for regular brokerage accounts on shares held for a year and is computed separately from your marginal tax rate for which will be your tax rate on income such as payment into retirement from IRA.
I can't fathom the liquidation of the twins. Just what would that look like. The assets or collateral are the loans in those MBS packages. Some loans failed and there where most likely quite a few on the precipice. The government has the right to make final interest payment and return principal to securities on those packages, so just what was the issue that made the bust worst. Could it been over leveraged derivative's? The CDOs and CDSs that the banks wrote. All quiet on the banking.
That is the whole issue. The government hs learned from the banks to privatizes the profits and publicize the losses. They sweep the monies and hold the warrants while talking about the twins as questionable health and risk.
The twins are privatized and that hasn't changed. Said so in the video. That why they are under conservatorship. Not going into receivership as these entities are not your typical business. Basically if they fail and they did it is game over for our economy. It happened but the illusion had been postponed by government intervention and monetary policy. There is no other way but succeed. You don't want to consider the conciquence. Life as you know it would be like some sci-fi movie.
On the money. The scenario Mark was stipulating was because the Democrats was pushing for it would be dire and the fate of share holders would be last of our problems as we all be circling the drain.
Was spending time with my grandchildren and at days end saw another big drop. Glad to see someone with good reasoning too speak on this situation. Rewards will be with the ones with their heads on straight. So many doom sayers. Sad. Well I am for one can't wait for what is in store first quarter next year as they also said they could be released early. People should know that a big hole in space could open and swallow us whole. California could slide off into the ocean. What has happen over the last eleven years make you think we are going to be wiped out. Crazy.
Considering it was forced on them, who at that time would take a loan at 10%. Wish I could get that. What happen to the cash the companies had on books? What happen to tax rules for taking tax write offs on loss on the assets of those loans. Why should they been concerned about those loans rated so high? Don't loans include that ability to be paid off over a period of time? If banks don't loan to bad risks then how is it the government accepts one to two entities with trillions of dollars of assets that they should have counted on their books. And the one that blows my mine is that they been profitable the whole time. Damm bulls and mob bosses if you ask me.
Speaking of Mick Mulvaney, spoke sloppy in front of media and back in the news tonight. No-one is safe from this guy and I am thinking his next job will be working at the south pole.
Anybody who believes the lies that the government saved the twins would believe anything. Can only explain it as fake news from those who should tell the truth. While they speak of the twins ill health they sweep all the profits to their coffers. What happened and still happening speaks of their health and confinement by the government. This is how it is done with any company that works in concert with the government as they have to dance to the tune. Government contractors have some protection from the control of the government that wasn't permitted for the twins. Why didn't the government contract with the twins for services. Thats right they where broke and needed to keep that hidden too.
It's been the illusion since inception of the conservatorship or like I like to call it "deceivership" (my own new word). Pay no attention to that little man behind the curtain. Wizard of Oz.
talk is cheap
30 year fixed at 3.69% and Fed is expected to cut a quarter point. At these rates you don't have to rely on the twins for mortgages loans. Going crazy low again. There is a generation of young people who just 15 yrs ago can't imagine higher rates. Loan rates prior to housing bust where more then twice todays. More people living in muti living or apartments must be thinking about owning as the mortgage rate gives them more and ownership is an investment. What would sweeten the pot is to reverse the salt tax. That was a mistake. Also Trump needs to push hard for the tax plan he ran on. That way student loan types which is about 1.5 trillion would stand a chance to have discretionary income to own a home and pay on loan. All this activity would go a long way on debt from tax revenue from peripheral business activities. Remember a bipartisan group lead by Simpson and Bowles only answer to paying down debt was to grow us our of it. The debt was considered huge then and it more true today.
Rational thinking. Maybe they will hear you.
Me thinks it was a quick fix the satisfy to get it started. Why have warrants if no one buys. Crazy thinking. Why buy with the government owning warrants of almost 80%. Does the government with all the risky business that isn't the twins would they not think having a healthy SP wouldn't reduce risk.
It will be interesting to see how the warrants disappear as I can't see them following into market and exposing new shareholders to unexpected loss. Me thinks that they are holding everything up. When it happens, most likely at the onset, lookout for explosive SP explosion. Those on the sidelines will not be able to jump in with less then an open market order or option buy. Ka Boom!
One truth is that even the government must realize is these companies are better and less risky with a healthier SP. There is no doubt in my mine that there are players among the political types and that is wrong and bad motivation for the health of the country. There is a process that they should follow about sitting in seats where decisions are made that would have an economic affect on shares held by those political types. It is against the law but most likely not rigidly followed. Your not going to get them to talk about stuff like that. I know as civil service employees do financial disclosures when advising on products available for purchase.
I assume there are some people who play both short and long positions catching cash and shares as they go. brutal on those watching SP. The twins have never been for the faint of heart. They have never looked better and the future looks bright. Suggest running your own race at your own pace.
People playing people. Rock steady.
Just as well. How is it the old lady said "Where's the beef". I know people love the price swings this causes but just let SP rise on factual data. It's going to happen as the reason for the twins has never gone away and the proof is their continued success that is undeniable. Just make sure you have the shares you want going forward.
He has a history of taking distressed companies and restructuring and in the process dissolving shares.
And that would be a good thing. First thing he do is wipe you out. Trust me, he is no friend to shareholders. Unless they are Berkshire Hathaway.
I know I would like to see more competition on rates. I would like to call my mortgage company and give them a choice to keep me or loose me to someone with a lower rate. I have a crazy credit rating and last time they came to me and gave me a new loan and rate and it didn't cost anything or didn't have to do anything but sign the new papers. After some of the loan rates of the past I love making the payments at these rates. I know my parents would fall out of their seats if they where alive today.
More then likely if it worked once it will work again theory plays out all the time. Over and over again. Allowing investment banks in with changes in 1999 of the fair housing act was proof. The planners of that act knew it then but we had to change it do to greasy hands and the results will be studied long into the future and the truth will be obvious. It doesn't matter as there is more risks ahead and while congressional types play politics Rome's fires build. Forgive them lord as they not know what they do. They will miss it when it is gone.
And I believe they can halt the trading too.
So the purpose to allow the twins to build capital is to release from conservatorship, like the government isn't going to back the twins or the banks in the event of some unsustainable economic out come. Me thinks it because they are listening and know the government can't save any money and hasn't. It a good jester but the government has to do more as to many loose ends and investors what too know what is in it for them. Something official like documents of release, something to insure share value like dissolve worries over warrants for good and me thinks SP will resume a steady climb. I don't think there is any monies that can be expected as this government is broke.
Me thinks, twice bitten twice shy syndrome.
I don't see banks adjusting their loan rates to keep pace with their borrowing rates. Something got to change there.
Well I don't think you have to worry about that subject to come out as they are going to have to find the funding going forward. You would think it would be a talking point by one side or the other. I find it strangely quite on those issues. Just moments during financial talks and they gloss over it with lees then a hick up.
ah the sound of nail guns and beeping of construction backup sounds ringing in the air. I am looking forward to a little more jingle in my pockets. Urban sprawl here we come!
Sure, makes sense as they are misguided. Someone tell them to quit banging their heads on the wall and it will quit hurting. Just too funny. However they did shine a light on themselves that could bring more trouble their way. I see only one party in the race today.
So what would be a formal process for release. I assume an announcement of a symbol change going into the big board. They satisfied a significant purpose stopping the drain of funds but how are they going to explain returning to the sweep if the twins continue down the road with no problems. Oh I know, they manufactured the problem to begin with.
Sorry, can't follow your line of thinking. There was a mouse that fell on a reporter. I wes being funny.
Maybe just as well. There wasn't any meat on the bone.
I assume our SP has been a reflection of the whole market. So if it is over the possibility of impeachment then get them while it is good as this is going the way of the election. Big surprise.
Yes. But there are court cases in play already. Still be interesting.
We will see if the little boy blue syndrome is at work here or they snap out of it. So much fun.
Thanks super post! Companies back to earning per share with future worth in the works.