Replies to post #363245 on Fannie Mae-No Politics (FNMA)

[whipstick]

That's a fair point on Valeant - hopefully that turns around - I haven't been following it but have seen some recent negative headlines.. I digress.


Regarding this:

That is a sound investment thesis for someone with the nerve, patience and capital resources to navigate the very evident risk profile AND the likely multi-year rebuilding threshold necessary to hit pay dirt.

You believe this is a multi year payout from here - after the courts resolve and the people plotting the TBTF takeover of the mortgage market capitulate and go back to plotting another eventual takeover farther down the road? I feel like a court ruling in the plaintiff's favor will make the commons pop and hold steady quickly - maybe the pref goes closer to par in the short term making them a better play for that time horizon - which would make sense if you're positioned like you say - in pref. And if you're fellow traveler - Glen B! Plus the possibility of repayment of prior dividends as they would have played out sans 3rd amendment. I guess if you truly believe in $60 PT for the commons there needs to be an inflection when you switch gears to common.


I too find this part to be kinda gross/offensive:

The part about all the hedgies I dislike is what I view as disingenuous posturing amounting to trying to game the court system to bleed $bazillions from the government for wounds and damages that inevitably are based on coulda/woulda/shoulda-been enrichment. "We caught you doing something illegal, so we are going to bleed you dry in a multi-front legal assault for everything and anything including the kitchen sink." The garbage about "Saving Fannie" and the importance of affordable housing as a motivation to sue is self-serving, sanctimonious bullshit. That's the part I find offensive.

We get that your interests align, but please don't pretend that that is why you're here!

Anyways, thank you for your thoughtful reply.