Replies to post #269146 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

955

mistake?

well given the AIG case we can have a live experiment with little risk - other than a temporary decline

I think the AIG suit will lose due the extreme power the judiciary will afford to the executive during a time of crisis or national emergency - which it was for F and F and AIG

I think that the third amendment fails legitimacy on several grouds and key is that it occurred just as F was getting very profitable and no emergency

If AIG wins its case - F and F go up 3x that day IMO

If AIG loses it case - F and F will fall but that will be an interesting speculative price - as indeed the suits focus on the latter event not the original

I hope AIG wins and it suggests victory of large or medium size for FNMA - but I do not expect it

I expect AIG to lose and that will impact stock price but as you note the focus is not ON the original event in times of heat and crisis but much much later

[mrfence]

Yah, I remember the lawyer that filed the first suit saying that they're not arguing about the initial takeover when the suit was filed which was a mistake IMO. Basically, all the serious wrong doings were done in the beginning, and accepting those makes the profit sweep look legit. Should have gone for their throats in the first place... might have already been settled by now if they had IMO.