Value Microcaps Zip Code Changers

[littlefish]

Researcher- I never had a big position and scaled back as it went up.

Not thinking of rebuying any unless it drops substantially- maybe $1.5 or so and depends on developments.

At the same time, I am keeping the small 3K I have left to check out of only if it rallies a fair amount more, maybe mid-high $3 level to sell a few more.

I want to keep just a LITTLE bit in case a dream result happens where the companies are allowed to thrive on their own again and the govt control terms of common gets released or changed to a more favorable level for shareholders.

The govt could just get their payback amounts, cancel the share dilution they potentially have but at same time force companies into some kind of partial wind down where the remaining capital and earnings get paid back to shareholders once govt (taxpayers) get paid back and allow FNMA and FMCC to continue as biz in a smaller sense.

If that happens, the FNMAS I think might be worth a shot owning but who knows if anything ever works out. Too complicated given the huge size of FNMA and FMCC in the mortgage markets. The private sector is too small, lazy, and lax to pick up the slack- just look conditions are perfect now for them to make bank and they're still not pulling much biz away from FNMA and FMCC as they shrink.
I doubt anything material will happen soon in terms of meaningful mortgage wind down. Funny thing is the mortgage companies are now bitching about how much FNMA and FMCC are making for taxpayers LOL. Who has the back of those bitching lenders/mortagage companies? Taxpayers? Oh...

Hmm, then how come they (private sector mortgager companies) don't bid on the mortgages FNMA and FMCC hold and get more competitive offering new mortgages if they have a problem with it?
Take the little pieces they can handle from FNMA/FMCC at reasonable prices and allow the sales to be capital used to repay taxpayers? With leftovers going to preferreds and then common??

Hah- chickensh&t private sector mortgagers wants their cake and eat it too without getting fat or having to exercise. That's one problem with America's capitalism (govt and biz too closely tied together). Buffett likes that cuz he can use his ties to govt to figure out where to move next IMO.

IMO the housing markets without FNMA and FMCC will be messy. All the govt backstopping still allows for a lot of loaning/lending that the private sector would not take risk on. Lending for housing would shrink massively w/o the govt help IMO and having reliance on pure private sector. It could be done but would be a shock to the current govt-reliant backstop system we have it seems. And if htings went downward U know the private sector would freeze up and there U go, a meltdown in housing again potentially.

It's a beautiful thing when the housing market is recovering and prices are rising (great for banks/private lenders too). But if the housing market were to get hit again, it would be a huuuuge mess without FNMA and FMCC (or more correctly govt mandated taxpayer support) in terms of property values and unconcentrated homeownership IMO.

Personally if people want fannie and freddie out of the markets then let's just get it over with now that treasury/taxpayers have most of their $ paid back to treasury and have the collapse so we can start a recovery (kinda Jim Rogers style, shoot from hip and get it over with). Otherwise we're just gonna drag on and on with small tweaks to the system to prevent a meltdown (kinda like our debt spending hoops these days). True delaying things may allow for a hocus pocus miracle solution down the road but it also will create constant stress and worry to the system where panic and collapse become more probable and gridlock is common.

Anyway... Rambling. It's Friday and holiday weekend Happy summer kickoff to all!

Oh ya, all IMO only.