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navycmdr

07/21/14 8:00 PM

#234175 RE: 10bambam #234174

minor victory ? ... lol massive uncetainty ? ...
wouldn't call this an unbiased report :-)
they probably are shorting the common ... lol

Here are the comments from Foolish Readers on their own article

Comments from our Foolish Readers

Report this Comment On July 21, 2014, at 11:28 AM, smauney wrote:

Here's some speculation: When stock market makes upcoming big correction Washington will be begging the GSE's to stick around. Winding down GSE's while market is another 5 to 7 year recovery mode would truly spell, as judge Sweeney likes to say, "Doomsday".

Report this Comment On July 21, 2014, at 12:56 PM, truthwillsaveus wrote:

I continue to be shocked and saddened by The Fool's unwillingness to take a principled look at the GSE situation. I resent the constant patronizing tone of your articles calling F&F risky bets. I have researched the history and status of their situation thoroughly and am invested not just with the hope of monetary gain but as a matter of principle.

1.The stock in these companies is for sale. That means anyone can buy a piece of these companies. They are PRIVATELY OWNED.
2.The companies have assets.
3. They have paid back their bailout money and then some.
4. They are profitable and have been working consistently to clean up the mess from the crisis.
5. For 75 years they have provided for affordable 30 year mortgages helping create a strong middle class and having an immeasurable positive effect on our economy.
6. Were demonized and blamed for the housing crisis when in reality the banks and mortgage companies responsible for the crisis have been held largely unaccountable and left F&F holding the bag.

7. Conservatorship is not recievership or bankruptcy. The sweep is illegal. The government must uphold basic property rights.

8. Attributing no stock value for Fannie and Freddie for whatever reason turns the whole principle of private corporate ownership upside down.

Like the interstate highway system Fannie and Freddie have been taken for granted for so long but need a little repair. The reform bills I've seen so far (including the most recent) want to tear up the system and replace it with something which is likely to cause uncertainty, far more harm than good at best, and possibly dire economic consequences.

Report this Comment On July 21, 2014, at 1:43 PM, Retiree2 wrote:
I invested in 2009, long before the government declared "The Robin Hood Act" of 2012.

I believe in American, I invested in America.

I'll be damned if I will let the government steal the only chance I have of a finically secure retirement.

If I sell now, I would be OK for a few years.

But just a few years ago, the government scared me into believing there would be no SS in a few years.

Their advice was to invest in the stock market.

I used my savings and took their advice.

As I am too old to get a good paying job again, they are now going to steal my last twenty years on earth?

NO!!!

Report this Comment On July 21, 2014, at 3:07 PM, PaulApp wrote:
To idiot, it's a speculation!

I've purchased Fannie and Freddie before 2008 and had continue to do so because I believe in America! Both of these companies have provide suitable housing market for many home buyers and investors. They have fulfill their goal to provide affordable housing to all Americans!

Tell me any other companies that have done as much, then I will promise to remain quiet!

Report this Comment On July 21, 2014, at 3:23 PM, hongchang wrote:
fools keep telling people the same story over and over again. Well, tell us investing in which company isn't speculation then, biotech, internet companies?

Report this Comment On July 21, 2014, at 5:58 PM, truthwillsaveus wrote:
“If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.”

Joseph Goebbels

Of course these days "the State" is simply an extension of the highest bidder, whether it's big oil, coal and gas, big pharma, the military industrial, complex, the gun lobby, or big banks, etc.

The big lies come from the corporatocracy now but the truth is there if you look hard enough. The necessary demise of Fannie and Freddie is a whopper that I'm surprised that The Fool buys into.


JJ8

07/21/14 10:08 PM

#234187 RE: 10bambam #234174

"There is an important distinction to be made between investing and speculating. If you buy the common stock of the two GSEs, you are speculating and you should only allocate a small amount of your funds to such a risky bet."

Right. I agree. And, it makes sense to be aware of it. There is an inherent high risk here. We have been saying that this is like a Lotto ticket for sometime.

At this time I have all of my Realized Gains plus some of my own funds in it.

Good reminder to consider restricting to holding shares that have been acquired for free from profits... while trying to add more in the same way, if possible.

Thanks for posting this article. GLTY

PS: May not respond as I've been restricted to one post per day at this board, at this time. Thanks. GLTA