Replies to post #638026 on Fannie Mae-No Politics (FNMA)

[chessmaster315]

Investor participation in a new issue stock is voluntary and at the discretion of the investor.

One of the first questions an investor would ask, is "Why do you need my money?"

The answer here is, of course, to replace the money stolen by the government in the Net worth Sweep and to recapitalize the GSE's.

The very next question:

What is to prevent to government from "again" putting this company into conservatorship, and AGAIN stripping investors of all their profits to fund Obama care, especially if Biden gets elected?

The answer? Nothing. But, we can change that answer, or rather, the US Supreme Court can change that answer to:

The United States Constitution prohibits the taking of private property for public use without just compensation.

Once shareholders have been "justly compensated" for this taking of our property, only then can the new sharholders be assured it wont happen to them, also.

The "new issue investors" will likely want to review the Supreme court decision and THEY get to decide if they think its "Just compensation". Its their money, they can spend it or invest it as they please.

Simplisticly, its like borrowing money from a bank. If you pay it back, to the banks satisfaction, then they will gladly make you another loan.
However, if they feel you stiffed them, they not only will not make you another loan, but they will report you to the credit bureau, and other banks wont want to lend you money either.

Those new banks are gonna be asking the same quesion: What is to stop YOU from stiffing me, like you stiffed the last bank?