$2 are coming!
Reality Check
Mnuchin will not let go of GSE's profits. He will appeal to SCOTUS
and in the meantime give the heist a different name other than NWS.
He is a politician and it's in his DNA to not let go of huge profits going straight to treasury. He admits it, with no shame or reservations.
But he also knows that just before last election and shortly afterwards he declared that one of his first priorities were to take the GSE's out of Government control. So now he has to stand up to his words and explain why this doesn't happen. But don't worry we are talking about Mnuchin the Genius. He found a perfect excuse: any GSE reform should not be carried out without protecting the taxpayer!
DEFINE TAXPAYER PROTECTION????? Impossible!!!!
Mnuchin knows that the magic words - Taxpayer Protection - similar to National Security is a term nobody wants to mess around with.
He also knows that if there is one subject that the Congress would agree upon - overwhelming bipartisan agreement - is Protecting the Taxpayer.
The sound of it brings joy and happiness to every congressman - Repub or Democ. Maxine Waters gets an orgasm when she hear this sound - Taxpayer Protection. After all Congressmen were elected to protects their voters!
So who is going to stand in Mnuchin's way when he raises the banner of protecting the taxpayer? Right: Nobody.
So now he has all the time in the world to leave the current situation intact and collect billions of Dollars every quarter. Definitely expect the Sweep to go through at the end of this months, and in the following quarters (but under a different name and definition' following the enbanc ruling).
Remember how MC entered his new job with enthusiasm, expressing a sense of urgency to reform the GSE's! All of a sudden he became quiet and subdued. He also completely changed his tone. You guessed right - Mnuchin told him explicitly that he wants the Sweep to go through until the end of his term. so please step aside and don't interfere' or else...
So right now expect 5 more years wi little or no change in GSE position' if DT wins the election.
If the democrats win - doomsday for the Enterprises.
If you asked USSR leaders from the middle of the previous century what do they think about the NWS.
They would tell you - Those Capitalistic Americans are always imitating what we invented, but call it by different names.
We invented the system of nationalizing private companies and forcing them to transfer all profits to the Soviet Treasury.
The Americans did the same with the GSE's only the rather use the more refined term: NWS.
Now we wait for a new name following en banc ruling.
I, as an investor, feel very bad - both for myself and for most investors on this board - who momentarily saw the light, only to rapidly be extinguished by ruthless, calculated, crooked politicians.
They don't care about the legal system. The courts will not make them change their objectives. DJT will certainly will not interfere.
