Fannie Mae-No Politics (FNMA)

[JosephS]

This is literally the trade of a lifetime. This will likely go down as one of the most epic trades of the century. I got in in late 2009 after things began stabilizing and the thoughts of eventual loan loss reversals in massive quantities were discussed. Plus the fact that the U.S. needed low interest rates and FNF were one of the means to that end. The debt had to be guaranteed. That is one of the biggest stories here. Berkowitz and Ackman were just a "twinkle in my eye" at that point. I never knew Perry Capital was in. It was Gator capital(I think we learned about them after de-listing) and Kyle Bass(who completely bailed on the trade in 2012). None of my friends bought it. None of them believe in this. They still won't. That tells me that this is a different trade and one that many can't envision(or fear) SO... bottom line.... A bunch of hedge funds and people that understand housing finance and the law own this. Regular retail investors might own the common but don't own the preferred at all. I think both the common and preferred are in the same boat. It's just that the preferred have life preservers. Not that there aren't sharks circling out in the water....There are. Not a recco. I do think that we are much, much closer to resolution than 2009. All shareholders must be treated the same no matter when they bought. Treated FAIRLY. I think that in 2009, no one but a few of us thought we would be here. I did. I thought that the loan loss reserves would be mostly reversed by now. I think that in late 2016, the Supreme Court will make a ruling on this. Epstein predicted 3 years from summer 2013. I think that the delay tactics have been better than that. I hope Epstein gives an update on his thoughts about timing again soon. If investing was easy, we would all be sitting on the beach drinking Mai Tai's with Milton.