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This is good news. I would like to see the administration take a blow for not dealing with this sooner. Should have retained capital starting as soon as Trump admin took over.
Is everyone expecting a big run next week or something? If so, why? Because tax reform?
Oh ok. I misinterpreted your previous post. Sorry about that. I thought they added those shares. Thanks for clarifying Navy.
I'm surprised that Ackman doesn't diversify more into preferred. He must be very confident that the future for the common shares is even brighter than the preferred.
Agreed. stockprofitter is wrong about the Jones win being a good thing. We want the tax bill to pass without Corker having influence. I don't see how that is possible now. What am I missing?
Navy, the board's MVP (most valuable poster). Thanks for all that you do here bud.
Gotta love Dick Bove!
Agreed. Scottrade sucks.
Where are you seeing that a gag order was lifted? Are you saying because he was interviewed?
The senators haven't even seen the average joke plan.
have you seen anything from Corsi lately?
Everyone wins with Moelis and everyone wins with the average joe plan. The difference is that the commons with more with the unrealistic plan, and the other plan is much more likely to happen.
I'm fine with $8. Better than $3 for me.
agreed. It isn't going to happen. Even on the earnings call yesterday, Ackman again mentioned that the government owns a 79% stake in the companies. The hedge funds aren't challenging the warrants because they know that the government isn't going to throw away the huge profit they will make from selling them back on the market. They will come out looking like heroes to the general public that doesn't have a clue what really happened here.
Yep. Long and hard.
Thanks bcde, but I was referring to "eliminating F&F" in the actual tax bill, not the article.
Good article by Bove, but where in the new tax bill does it say F&F will be eliminated? What am I missing?
Is that a quote? Where did you read that Trump said that?
I think that was the dumbest post I have seen all year.
Good news in my opinion. I would like to see a draw and hopefully a huge public uproar as a result. At least it would force the government to have to justify their actions for sweeping the money to the general treasury coffer for all of these years.
I wonder what it means for the GSEs to have no retained portfolios. Right now their portfolios are massive, right?
I think you have to wait for it. The latest executive order should solve this net worth sweep dilemma. My bet is that the treasury agrees to a yearly dividend which allows them to build a capital buffer should they suffer a negative quarter. Then between now and when the dividend is actually due, the GSEs are "reformed" and released. Let's see
It is only down 2% on the news. Do you think it goes down more tomorrow? I think the positives here greatly out weigh the Berkowitz news.
I suppose that explains the sell off
Here comes the predictions. $3 by Friday. $4 by turkey. $5 by santa. $6 by Valentines.
The entire theft was a scam and the warrants should not be exercised, but I think it is pretty safe to say that they will be. I don't think Bradford is way off. I think that Patswil is way off. But who cares what I think as well..? Nobody
Hi Glenn. Thanks for coming back to the board and sharing your views. In one of your previous posts you mentioned that you feel that the common prices mentioned in Moelis plan seem a bit high to you. On page 41 the estimates are as follows:
2018- $7.95
2019- 8.75
2020- $9.62
Are those the estimates that you are referring to?
Yesterday in an interview Ackman mentioned that his fund believes that upon release, he seems Fannie and Freddie being in the "mid-teens". In your opinion, why do you think his estimates may be so far off?
That sounds real. Especially the Alcatraz part...
The event already passed. The stock dropped and then recovered nicely. Looked strong friday. Hopeful for what next week will bring.
Sherman was just babbling on. Half of what he said doesn't even make sense. He said "it isn't broken, but we have to fix it". Stupid comment. I wonder if anyone was even listening to him.
Yes it has. I has just been awhile.
Do you do that with all stocks navy?
Where are you seeing 10 billion a quarter?
"“I don’t think they’ll need to go there,” Ackman said, referring to lawsuits currently leveled against the government by financial managers such as Bruce Berkowitz, founder of Fairholme Funds. Instead, he expects the question of returning the mortgage lenders to private ownership to be settled in Congress."
Nice.
My theory is exactly what you listed in #1. Exactly. I have a feeling most of those that are long here believe the same thing. Either that or they believe the courts will set us free.
Yep. All of the TBTF banks are setup with the same "private gain, public loss" that he is referring to. Maybe he should talk about wiping out their shareholders as well.
How do you interpret these comments by Watt? Specifically regarding the "to-be-announced market"?
"New securitization infrastructure: Through a joint venture formed by the Enterprises under FHFA's direction, the Common Securitization Platform (CSP) is now operating and all of Freddie Mac's existing single-family, fixed-rate securitizations are being processed using the CSP. All parties are now well down the multiyear path toward the CSP becoming the infrastructure used by both Enterprises to issue a common single mortgage backed security. When fully implemented, we believe these changes will facilitate deeper liquidity in the housing finance market, support the to-be-announced market, and eliminate costly trading differences between the Enterprises' securities. The Enterprises are developing the CSP with an open architecture such that it will be usable by other market participants."
not naive and no need for personal insults. Just saying that it isn't a big deal. It is not like he is using tax payer money to pay for his personal travel. That would be a big story.
They better have more than "having employees book personal travel for him" if they are trying to blackmail him. haha. That isn't a big deal at all.
Watt takes his orders from the treasury. It couldn't be more obvious. He goes to these hearings and talks about the need for a capital buffer, yet he does nothing because Mnuchin says that he expects the dividends to be paid. If Watt was acting in the best interest of F&F then he clearly would institute a capital buffer.