Replies to post #296555 on Fannie Mae-No Politics (FNMA)

[betahighlander]

thx- that was mar 5th- message from the Nazi bunker- so wait until now to post?

[Sogo]

There's the doubling down many predicted. Of course treasury wants the GSEs to wind down faster than they are doing. Pressure is mounting on the other side of this issue.

[JacobZf]

That's old news

[JacobZf]

We all know that the stand of the current administration on the Fannie and Freddie and it's not likely to change until Obama is gone.

[Sogo]

2.5 yrs until 2018 zero capital level. I think there is still huge political risk here, and sadly courts move too slowly for us longs to be sure that there will be a final ruling before 2018 comes and there is zero capitalization. At that point, you know politicians will start crying for what they will call "another bailout" because doing so will serve the purpose of generating a nationwide debate and news story that will of course consist of mis-information and lies. Just the talk of "another bailout" will give more cover to the banks that want to take the GSEs' business and their for-hire politicians will push for "reform" that benefits banks and screws shareholders.

At some point before the 2018 mark, it is possible that court or other developments might bring the pps back to many shareholders' break even point or beyond. And that would be a chance to exit for anyone interested in trying to avoid a big loss. But that could be just a temporary pop before the politicians manage to succeed in this outrageous theft. It's wrong and disgusting. But there should be one or more chances to make nice profits even if the fair value of these shares is never realized because of gvt malfeasance.

[Sogo]

He's using "taxpayer risk" in opposing ways. First he says while in cship the GSEs pose a risk to the taxpayers because they might need a bailout in the future. Then he says that if they were released they would pose taxpayer risk because they might conduct their business in such a way as to harm the housing market. His obvious goal is to give their business to the banks.

People, this is yet another example of politicians using language ("taxpayer risk") to confuse us. They are thugs, plain and simple. Can't we all understand this?

[mikoli007]

Michael Stegman, the Treasury’s counselor to the secretary for housing finance policy, commented at a Goldman Sachs conference today that the Obama administration thinks Fannie and Freddie should wind down mortgage investment portfolios more quickly than they are currently doing. The two entities also created new kinds of securities that they sell to private investors to unload some of their mortgage credit risk, which the administration thinks should also increase. /quote]


This is a very encouraging paragraph, IMO.

[Donotunderstand]

thanks for that MARCH five article as if its news