Fannie Mae-No Politics (FNMA)

[cash84]

Buying time
Here is what I really believe in this proposal:
1- Hedgies ‘re throwing the ball into the Gov’s field knowing that the Gov won’t approve the proposal in a hundred years. Don’t forget F/F are milky cows for Gov spending and helping the country’s budget as a whole.
2- I believe, Hedgies are buying time until 4Q which will come in 3 month from now. Then, the Gov will really be under pressure for keeping F/F under c-ship without a legitimate good reason.
3- We all know that litigation is not good for the Government, shareholders or the plaintiffs (Hedgies). Litigation is mostly beneficiary to lawyers.
After all, it’s a brilliant move from Fairholme fund. I salute Berkowitz because he knows how to make everybody to admit that those worthless companies are more profitable than the biggest three banks combine. He and his fellas are willing to throw 52B to own a part…just a part of Fannie and Freddie. Ha
They can’t get it for cheap. But it’s a smart move.