Fannie Mae-No Politics (FNMA)

[chessmaster315]

Agree. Before Fannie and Freddie can be recapitalized, current shareholders need to be made whole. As I have explained, "investors" are not like chickens waiting in a line to be butchered and turned into Chicken Nuggets.

Instead, investors "hear the screams" of other investors (who have been wronged) and immediatly "exit" so they wont also be butchered.

And, "would be investors" in the new shares will also hear those screams, and immediately withdraw. Attracting the billions needed wont happen without first making the current shareholders whole.

After all, if the government butchers current investors, what is to stop the government from also butchering "new" investors in the new capitalization? Ans: Nothing.

Since investors are smarter than chickens, we wont wait in a line to be butchered.

Recapping FNMA "could well be" the largest IPO/capital raise, in history, as FNMA is a huge, dominant multi trillion (enterprise value) company.

As Churchill says, "You can count of people to do the right thing, only after they have tried everything else." ...and the government has tried everything else.

The rate of return will be phenomenal for investors who stay the course until this is settled.