Fannie Mae-No Politics (FNMA)

[chessmaster315]

Think about this. Ok. Your broker calls you to suggest buying "new" issue shares of fannie mae. Remember, the "last" (old shareholders) were wiped out by the government, and just took their money because they could.
So, what is to prevent them from doing the same thing to you, collecting your money, then wiping you out also? Ans: NOTHING.

I explained people are not like "chickens" waiting in a line to be butchered, and turned into Chicken Nuggets. Instead, humans hear the screams of other investors, and make like a hockey player and get the puck out of there. And, trust me, the shareholders would scream and scare off new investors.

Its like asking a bank for money for a new car, when you defaulted on your last loan, burning another bank. No, the bank will run a credit report, see that you defaulted and wont have any part of that loan.

Investors are weary about giving people their money, when that person stole from others, they will likely steal from them, too.
For this reason, there wont be an IPO with new money after wiping out old money.
People are not as stupid as chickens, waiting in a line, hearing the other chickens sqwack as their heads are cut off, and will beat feet the other direction. Im not a chicken and most people with money are not that stupid, or they wont have money long.

Remember, a new IPO of fannie mae would likely be the largest IPO ever..hundreds of billions...and would take many many investors. There are not enough stupid people with money to re IPO fannie after butchering old fannie shareholders.