Replies to post #481951 on Fannie Mae-No Politics (FNMA)

[whipstick]

bloop blop

[Cubshawk]

bradford86

eh, i dont know. i've never looked back that far.

receivership?

maybe the market thought that the commons WERE worthless and the preferred MAY have some liquidation value

but that was before the GSEs ran out of losses to print via fhfa accounting fraud and were forced to reverse the accounting fraud

good thing treasury stepped into the flow of funds and cast the net worth sweep net to catch it all like pokemon for itself

the real answer here is that during those times, it took really smart people to be able to figure out that fannie and freddie were going to be profitable

i didn't know at that time.. heck i looked then at fannie and freddie and their income statements and i couldn't figure out if they would be okay or not, i couldn't reverse engineer the accounting fraud..

there were gods among us who could though

john hempton

bruce berkowitz

and many others

gator capital had something on them too.

really smart people figured it out, but what they didn't figure.. was that the government was going to come steal the money

this has been wild.

No doubt - the country owes those folks for exposing the fraud. As for the ratio going after the implementation of the sweep - that seems odd to me. Seems I'd have expected the ratio to expand after the NWS given the higher likelihood the companies would be bled dry.

I have a feeling that no person in the group that devised this plan would have ever expected the GSE's to be able to withstand no profit retention for 6 years. How many companies can do that?

[JosephS]

Sims pointed out that huge DTA in 2010, too. Mhill put way more in than me. The nws was devastating in 2012. By 2011, we were all but certain the dta would be put back on the balance sheet. There were quite a few of us aware. We just didn't know for sure the timing. By normal accounting(it was explained in detail in late 2011 and 2012, it should have been put back on in 2012, not 2013.