Replies to post #405995 on Fannie Mae-No Politics (FNMA)

[lijianch]

How about preferred?

[capitalismforever]

It's interesting to me that they don't own the new building like they do the current one, but instead are leasing it with the option to purchase. In any event, I'm not speculating that it will go down like in the case of GM. I'm only trying to encourage people not to be so close minded about all the various options that could take place. It's been my experience that it isn't the things you are certain about that kills your investment. It's the things you haven't even thought about that does.

[Donotunderstand]

if

if L is > A which at the moment is not the case

[Donotunderstand]

if

if L is > A which at the moment is not the case

[jumpingjohn]

BIG DIFFERENCE: GM filed for Chapter 11 Bankruptcy, to much dept.
FNMA was forced into receivership by deceitful Obama Adm.


CapitalismForever made a good point. Like General Motors, this is what will happen if the GSE's go into Receivership:

https://en.m.wikipedia.org/wiki/General_Motors_Chapter_11_reorganization

Commons will be wiped out, and a new entity will be formed. That new entity will then be IPO'd as a new company w/ new shares.

They're also building a NEW Fannie Building, so maybe that has something to do with what's down the road for the 2 companies.

Holy $&@t!

[rekcusdo]

No...the two situations are not the same.

GM declared bankruptcy. This invalidated current share value and allowed the company to issue new shares once out of bankruptcy.

GSEs are in conservatorship. Completely different animal. If the companies go into receivership, they must, under the law stop operating. They can not then issue new shares the way GM did.

The only way capitalismforever would be right is if the GSEs declared a chapter 11, which is pretty unlikely.