Freddie Mac-No Politics (FMCC)

[FOFreddie]

You are right trunkmonk. Justice Alioto did everyone a disservice in his " special conservatorship" finding under HERA. It is a playbook for future nationalizations - next up will be the Farm Credit system which also has a private public legal structure.

My take away from the grant of Cert for the two separation of powers cases is that the 5th Circuit under the philosophical leadership of Judge Edith Jones has decided to take an active stand on preserving the separation of powers engrained in the Constitution. Based on the timing of the Remand for Collins and the text of All American, it is my hunch that the Fairholme DC Circuit Cert Petition will incorporate much of what the 5th has laid out.

The Fairholme shareholder lawyers will have a peak into the arguments of the US Govt to deny retroactive relief at the Southern District of Texas for Collins a couple of days before the DC Circuit Cert Petition is due. It is my hunch that the 6th Circuit Panel will wait for the US Govt Collins complaint and DC Circuit Cert Petition before filing.

Unfortunately, I dont think any positive legal development will do much for common prices until the American Funds Group is done selling. I am not sure when the tax selling period ends but I think we will have several more months of price pressure. I wonder who is buying all of this common? - in some ways it is amazing that the price has not gone to near zero at this point given all the uncertainty and selling pressure.