Replies to post #416240 on Fannie Mae-No Politics (FNMA)

[bcde]

rekcusdo,

Any thing is possible with the crazy legal system and free wheeling arguments by attorneys.

It can go either way. Based on rulings so far there is no logic or reason to predict one or the other way.

If one uses reasonable logic, any unlawful acts by either by Gov or private management, is a good reason to buy the stock. People can bet that rule of law will prevail.

[Sogo]

But conservatorship is temporary. That's the purpose of it. I know there is no legal force that can compel a conservatorship to be successful in that the companies return to solvency, but in this case the companies were successful and the conservator is the party who did and continues to do the existentially threatening damage to its ward.

An investor could reasonably expect, yes "expect" that a conservatorship will be temporary. Such an investor could also be said to be speculating that that will be the case, because nothing can compel success. But it's a reasonable expectation that conservatorship will be temporary. What an investor can't expect, is that the party in charge of improving the GSEs would in fact be the same party that ended up causing the GSEs' demise. So they could certainly argue standing even if they had bought after the NWS.