Nothing wrong with being a vulture.
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ACTION NEEDED TODAY
Please pick up the phone.
Investors Unite is hearing that the Senate Banking Committee may try tomorrow (Thursday) to continue mark-up of Johnson-Crapo, which cannot happen.
The two key Senators on the committee need to hear from investors today why they oppose this legislation.
* Sen. Tom Coburn # 202 224 5754
* Sen. Chuck Schumer # 202-224-6542
Key points to make as to why they oppose Johnson-Crapo:
1. It would add $5 trillion to our national debt
2. It would codify the unconstitutional sweep of investors
3. It will make mortgages harder to obtain
Please post your experience in this process.
ACTION NEEDED TODAY!
Investors Unite is hearing that the Senate Banking Committee may try tomorrow (Thursday) to continue mark-up of Johnson-Crapo.
The two lynchpin Senators on the committee need to hear from investors today why they oppose this legislation.
* Sen. Tom Coburn # 202 224 5754
* Sen. Chuck Schumer # 202-224-6542
Key points to make as to why they oppose Johnson-Crapo:
1. It would add $5 trillion to our national debt
2. It would codify the unconstitutional sweep of investors
3. It will make mortgages harder to obtain
Strategy on APPLE LEAPS
Pre-Conservatorship shareholders, please send me a message, if you have not identified yourself to me already.
I can be reached at Seeking Alpha or Gmail.
Also, Investors Unite has about 500 members now. Please continue adding members. You can send me their contact info (email, phone, city/state) or sign up at the website for the org.
Hi, I'd like to have my account reinstated please. I believe I was suspended for advertising an investor conference call on some GSE boards.
GSE Shareholders Conference Call Wednesday
If you have not received the invite please email me at david.sims321 at Gmail.
Please include your real name, phone, and city/state.
This information is vital for vetting members and putting them on teams with people from similar geographic regions.
Shareholders Conference Call Wednesday
If you have not received the invite please email me at david.sims321 at Gmail.
Please include your real name, phone, and city/state.
This information is vital for vetting members and putting them on teams with people from similar geographic regions.
Hey,
Please don't shoot the messenger on this. I just got off the phone with them.
They are still looking to fill slots for people that live in a state that has a Senator on the Senate Banking Committee.
http://www.banking.senate.gov/public/
So, if your Senator is on this committee, I strongly urge you to reach out to them and try to arrange transportation for next week.
"The real-time bottom line, thus, is $20 billion in fee and related income. On a book of $3 trillion in mortgage assets, that's not much."
I guess $20 billion is a drop in the bucket to this lady. She must wear golden panties.
$20 billion puts them in the top three of profitability, according to Fortune.
http://money.cnn.com/magazines/fortune/fortune500/
At ten times earnings, this is extrapolated to $34.84 per share (diluted by warrants, $200 billion/5.74 billion shares). The government should issue those warrants at $35 and call the whole business done with.
Attack Ads are out there now.
Here's the fool's response.
I do not know about Buffet buying anything. I've never even met Buffet. So, this rumor needs to be shut down.
I resigned because I am heavily exposed to this stock and feel a moral obligation to speak out. Once I started speaking out, my inbox has been flooded with emails. People do read these boards and do not post on them.
I've been invested in the GSE preferred and common for 5 years and I am not about to give up to a bunch of idiots in Washington.
That is all.
Slide deck on the $200 billion liquidation value.
http://bipartisanpolicy.org/sites/default/files/files/GSO%20-%20FNMA%20FHLMC%20Methodology%20%20Assumptions%203-19-14.pdf
You beat me to it....
Fannie and Freddie Have a Liquidation Value of $200 Billion?
By Paul Muolo
pmuolo@imfpubs.com
Fannie Mae and Freddie Mac have a liquidation value – excluding what they’ve already paid to the federal government – of roughly $200 billion, according to an independent evaluation conducted on the two GSEs, said officials with knowledge of the audit.
The report, conducted by Alvarez & Marsal, was making the rounds in Washington Wednesday morning. John O’Neill, a managing director in the evaluation firm of Alvarez & Marsal, confirmed to IMFnews that his company conducted an evaluation on the GSEs for the Blackstone Group, but said he was not at liberty to discuss its contents.
At press time, no other information was available on the matter.
Several hedge funds have bought large stakes in Fannie/Freddie junior preferred and common the past two years, essentially placing a bet on their return to profitability and the likelihood that down the road they might be entitled to a payout.
By the end of March, Fannie and Freddie will reach a milestone: they will have paid the U.S. more in dividends than the $188 billion in federal assistance they received from the U.S. Treasury. For more on the story, see the Thursday edition of Inside Mortgage Finance.
http://www.insidemortgagefinance.com/imfnews/1_312/daily/fannie-mae-and-freddie-mac-have-high-liquidation-value-1000026542-1.html?ET=imfpubs:e4425:11938a:&st=email&s=imfnews
Notice the source too.
The Obamacare of Real Estate
3:01 PM, Mar 18, 2014 • By JAMES K. GLASSMAN
Top Senate Banking Committee members released plans this week to wind down mortgage giants Fannie Mae and Freddie Mac and replace them with a complicated apparatus disturbingly similar to Obamacare.
While the proposal by Senators Tim Johnson (D-SD), the chairman, and Mike Crapo (R-ID), the ranking member, was announced with great fanfare, it simply follows the outlines of another bipartisan bill, offered last year by Sens. Bob Corker (R-TN) and Mark Warner (D-VA). The idea is to get rid of the two government-sponsored enterprises (GSEs) that provide mortgage financing today for most American homes and replace them with a system of private lending with securities explicitly backed by the federal government.
In going through contortions to reinvent the housing finance system, the senators have avoided the obvious solution: keep the basic platform that has generally served American homeowners well but reform it to reduce risks. Instead, Johnson and the others have come up with a contraption that resembles the Affordable Care Act in its convolutions and its potential for unintended consequences.
It’s hard to understand why legislators think that government can restructure this one-sixth of the economy any better than they are restructuring the one-sixth represented by health care.
http://www.weeklystandard.com/blogs/obamacare-real-estate_785471.html
Who is this guy?
http://en.wikipedia.org/wiki/James_K._Glassman
It's also Pi
Yes. Legit. Send me a private message through yahoo and I will give you more information.
If this could be bought on margin, today would be a good day.
I've also received a phone call from them. More good things to come....
Russia 'planned Wall Street bear raid'
17 March 2014 Last updated at 04:26 ET
http://www.bbc.com/news/business-26609548
My comments:
Russia attempted to collude with the Chinese before the Beijing olympics to commit economic warfare. They were going to dump FnF bonds on the markets in 2008. This was at the same time they were invading Georgia.
Why might they short attack the GSE common shares? 1. GSE Common shareholders are the first people to line up with fresh equity capital to recapitalize a new Fannie and Freddie. 2. Hurting common shareholders is like poking a stick in a hornet's nest. We come out ready to sting. This hurts chances of a grand bargain or settlement. 3. A weak US Housing market could damage the overall U.S. Financial system.
Remember that during the worst time of the housing crisis, Obama's National Security Advisor was Tom Donilon, an ex-Fannie Mae exec with no military experience.
Injunctive Relief? When?
If it's years and years away, let's hope we get some injunctive relief from the courts.
I'm all for legalization. But this just seems like a mini-bubble.
Here's how investors take the first loss, they hold common stock. Higher risk and higher return.
We just need to increase capital standards and that increases the buffer between taxpayers and shareholder. It's that simple.
The fallacy is in believing that we need an overly elaborate solution. Look up Occams razor. It's a simple philosophy.
Pot stocks....
How do you value a quasi-legal business without an established customer base and no earnings? What happens when someone links pot to lung cancer?
This doesn't look quite as nice on iHub.
Anyone else think the common chart shows a "cup and handle"?
With discovery coming, I think this stock is due for a huge breakout.
The Shockingly Idiotic Johnson Crapo Bill
Mar 13, 2014 7:31 AM | about stocks: FNMA, FMCC
As you might have seen, the latest Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) Reform bill caused quite a stir over the past couple of days. Shares of the two mortgage giants peaked at around $6.35 per share on March 11th, prior to the release of a mortgage industry reform bill by Senators Johnson and Crapo. After the release of the bill, shares dove to $3.14 per share.
Barry Ritholtz, chairman and CIO of Ritholtz Wealth, called the Johnson Crapo Bill an "idiotic proposal" and criticized the politicians for "beating the same dead idiological horse." Industry experts were shocked by the proposal and completely caught off guard.
Matt Levine brings up an interesting point brought by the new bill.
"The other question is where you raise the $450 billion of new capital for private mortgage insurers. Now it happens that a lot of people are in fact clamoring to provide new capital to private mortgage insurers. Unfortunately, those people are doing their clamoring in the form of owning Fannie and Freddie stock, and whining/suing/lobbying to try to get paid for that stock. Those people are considerably more likely to be interested in capitalizing the new system if they can, in effect, "credit bid" their existing preferred stock at some value other than zero. And it will be considerably harder to get private capital in the new system if there's a recent precedent of let us just say arbitrarily zeroing the last guys who provided private capital to the system."
Within 24 hours of the crash, Ralph Nader went on CNBC to advocate for shareholders and suggest the public utility model. He also said that unless the powerful lobbyist groups support the bill, it is "dead in the water." Interestingly enough, Senator Mark Warner also went on CNBC and was heard saying that he believed the shareholder's claims against the government for the Net Worth Sweep had merit!
The famed Bill Maloni weighed-in by saying "nothing revealed with the Johnson-Crapo announcement, no set of principles, no draft bill, can change what the courts will need to decide in the multiple and massive cases against two Treasury Departments and the Federal Housing Finance Agency over the original [Fannie Mae and Freddie Mac] Conservatorship and the subsequent major alteration in how [Fannie and Freddie] return money to the U.S. Treasury."
All the action has inspired shareholders to create yet another petition on WhiteHouse.gov. Ralph Nader's recent petition got more than 1,000 signatures. It should be interesting to see how many this latest petition brings.
The key takeaway here is that fundamental reasons for holding the stock have not changed. Discovery in the Fairholme Funds vs The United States case begins March 20, 2014.
Disclosure: I am long FNMA, FMCC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.http://seekingalpha.com/instablog/532599-david-sims/2750763-the-shockingly-idiotic-johnson-crapo-bill
The Shockingly Idiotic Johnson Crapo Bill [Edit or Delete]0 comments
Mar 13, 2014 7:31 AM | about stocks: FNMA, FMCC
As you might have seen, the latest Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) Reform bill caused quite a stir over the past couple of days. Shares of the two mortgage giants peaked at around $6.35 per share on March 11th, prior to the release of a mortgage industry reform bill by Senators Johnson and Crapo. After the release of the bill, shares dove to $3.14 per share.
Barry Ritholtz, chairman and CIO of Ritholtz Wealth, called the Johnson Crapo Bill an "idiotic proposal" and criticized the politicians for "beating the same dead idiological horse." Industry experts were shocked by the proposal and completely caught off guard.
Matt Levine brings up an interesting point brought by the new bill.
"The other question is where you raise the $450 billion of new capital for private mortgage insurers. Now it happens that a lot of people are in fact clamoring to provide new capital to private mortgage insurers. Unfortunately, those people are doing their clamoring in the form of owning Fannie and Freddie stock, and whining/suing/lobbying to try to get paid for that stock. Those people are considerably more likely to be interested in capitalizing the new system if they can, in effect, "credit bid" their existing preferred stock at some value other than zero. And it will be considerably harder to get private capital in the new system if there's a recent precedent of let us just say arbitrarily zeroing the last guys who provided private capital to the system."
Within 24 hours of the crash, Ralph Nader went on CNBC to advocate for shareholders and suggest the public utility model. He also said that unless the powerful lobbyist groups support the bill, it is "dead in the water." Interestingly enough, Senator Mark Warner also went on CNBC and was heard saying that he believed the shareholder's claims against the government for the Net Worth Sweep had merit!
The famed Bill Maloni weighed-in by saying "nothing revealed with the Johnson-Crapo announcement, no set of principles, no draft bill, can change what the courts will need to decide in the multiple and massive cases against two Treasury Departments and the Federal Housing Finance Agency over the original [Fannie Mae and Freddie Mac] Conservatorship and the subsequent major alteration in how [Fannie and Freddie] return money to the U.S. Treasury."
All the action has inspired shareholders to create yet another petition on WhiteHouse.gov. Ralph Nader's recent petition got more than 1,000 signatures. It should be interesting to see how many this latest petition brings.
The key takeaway here is that fundamental reasons for holding the stock have not changed. Discovery in the Fairholme Funds vs The United States case begins March 20, 2014.
Disclosure: I am long FNMA, FMCC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Themes: real-estate Stocks: FNMA, FMCC
http://seekingalpha.com/instablog/532599-david-sims/2750763-the-shockingly-idiotic-johnson-crapo-bill
Hold onto your shares, or buy in the first 30 minutes. We've got a bounce coming.
I think the new retail buyers that loaded up over $5 got shaken out. Some of them were on margin. Additionally, some shorts may have seen the wind down language and jumped on. OTC trading didn't help a bit.
I switched my last GSE preferred over to common yesterday as it fell.
Cup with Handle Chart Pattern
"Like most technical patterns, the cup with handle pattern is really little more than a variation of another technical pattern. In this case that pattern is the double top. The pattern begins after a well-liked stock rallies to a new high following a positive fundamental development. As the stock surges investors feel increasingly comfortable paying higher prices but there comes a point when the "story" of the stock fails to convert new believers. Slowly, the stock begins to drift lower as those seeking to lock-in profits outnumber those intrigued by the story. Although most of the fundamental news is still positive, many investors begin to question if the stock really is worth the prevailing market price and over time a substantial decline begins.
This process creates an important technical peak (top#1). As the stock nears a twenty percent decline from the recent highs (this decline could reach fifty percent in bear markets) buyers begin to reassert themselves and the stock stabilizes and a reaction low occurs. From this point forward, the bias begins to tilt gradually higher. During this phase the stock may be the subject of positive Wall Street analyst comments, a new product announcement or legal victory. As the rally gains steam sentiment improves dramatically and new buyers begin to talk about certain new highs but those that purchased the stock at or near top#1 get ready to sell. These investors may have been waiting as long at 12 weeks for an opportunity to sell their positions without incurring a loss and they are not dissuaded by all of the new found bullish talk. Just short of the old highs at top#1 aggressive selling begins on no specific news but in reality some investors that bought near top#1 have already begun to sell. The stock begins to work significantly lower on increased volume creating a second, well defined top (top#2)."
http://www.smallcapreview.com/CupWithHandle.htm
Also shows up in TD Ameritrade Feed.
Wayne,
I heard you hold some IMPHO. Please send me an email at dpsimswm at yahoo. thanks.
Thanks I guess.
I'm giving up my ability to trade these back and forth. There is one scenario where I don't see this working out.
FnF both have strong core earnings. So, I believe they could support a $30 to $45 pps on the common. That's the main reason I am taking this chance.
Take the discussion to other Housing and Finance related boards today. Get the word out that the GSEs have reached Net Zero.
Fannie reached net zero today!!
http://finance.yahoo.com/news/fannie-earns-6-5b-4q-130002054.html
Fannie Mae is back!
Record Earnings and the government is repaid!
http://finance.yahoo.com/news/fannie-earns-6-5b-4q-130002054.html
Housing Finance is in the black!
Fannie has repaid their bailout!
http://finance.yahoo.com/news/fannie-earns-6-5b-4q-130002054.html
Housing is BACK!
Fannie just recorded the largest profit ever! Soon to be released from C-ship.
http://finance.yahoo.com/news/fannie-earns-6-5b-4q-130002054.html