Fannie Mae-No Politics (FNMA)

[LuLeVan]

Why am I so bearish on common stocks? Because I believe that the separation of powers in the U.S. no longer works. In the case of the FnF debacle, the politicians, who are among the defendants, and the judiciary are pulling in the same direction. In addition, the FHFA, which tends to be an unconstitutional fourth branch of government, takes legal discretion and fills it with arbitrary power.

The end result is a crusty entanglement as hard as concrete. Injustice has been cemented in place. What the Framers once feared has come to pass and taken root. Even Trump can't (and won't) really shake it, unless it benefits him personally.

I think the chances of this scheming collusion (see the 4th letter agreement and the fatal Scotus opinion built on it) being stopped or even reversed by legal means are extremely slim.

I also give Barron4664's Charter lawsuit little chance, even if he is formally in the right. All previous lawsuits have shown that the judiciary gets off the hook with angle-advocacy sleight of hand. The courts' actions may be formally legal, but the end result is not objectively fair. The rights of existing shareholders have been trampled on since Hank Paulson, and these kicks are likely to go unpunished in the end.

This will be even more true when the conservatorship ends, which could be soon. Once the legacy commons have been diluted in the course of recap/release, no one will be able to legally undo it afterwards, not even Barron4664 and Co. with a possible charter suit. The best you can hope for is peanuts, as in the Lamberth case.