Fannie/Freddie Politics Board (Politics Allowed~Non-Moderated)

[NeoSunTzu]

The manipulation WILL continue until we are off the OTC or the administration shows they are NOT just winging it and gives some clarity. I am fully confident the administration has the best intentions for current shareholders that we could hope for at this point, but it IS the financial establishment (all the current mortgage players top to bottom in that chain, Wall Street investment bankers, ratings agencies, MBS bond investors and holders, Treasury department lifers, and all others who want the biggest piece of the future gold rush as they can get) that are convoluting the plans and deals in their favor. All this causes continual delay and obfuscation that makes manipulation ripe on the OTC.

To rid ourselves of this mess I am now in favor of a modified Whalen plan. He says investors are hungry for income (bond-like and preferrred securities), other banks have been ditching their preferred, the guarantee whether explicit or implicit means common shareholders should be massively diluted, and the government is still owed hundreds of billions in liquidation preference. His bottom line is that investors would readily give the government a HALF TRILLION DOLLARS (!!!) for preferred securities in the GSEs and an explicit government guarantee - which would cover what the government is owed.

I fucking agree! Let them have it! If they can get $500B from Wall Street then go get it and let them do whatever the fuck they want with this mess. The modified part is (my modification) - they have already received $300B from the companies, TBTF banks paid over $100B in restitution TO THE TREASURY (not the GSEs) for bad MBS paper, Fannie itself has retained capital of over a HUNDRED BILLION, and they stole the common securitization platform from current shareholders. The government can easily PAY US (Fannie Mae shareholders) $150 PER SHARE and still make out like bandits from the leftovers above and the $500 B Whalen says Wall Street is ready to cough up for all future profits, retaining govenment control, and the explicit guarantee. (Freddie Mac can cacluate their own shareholder payment separately - not invested in it.)

I for one am sick of all the nonsense from the media, the financial establishment, government officials, and the fuckery involved in crafting deals that are NOTHING but spin to make it look like the government and the financial establishment isn't trying to solidfy their past theft forever and carrying it on into perpetuity. PAY US OUT PROPERLY (not the D.C./Wall Street doublespeak "fairly") - REPEAT PROPERLY. They have stolen much more than the $150 / share payout would ever cover - especially considering all the future profits of these combined, well-run companies into perpetuity.