Replies to post #691520 on Fannie Mae-No Politics (FNMA)

[JosephS]

I disagree with your last sentence but agree with the rest.

See, someone can buy a stock on the ipo(MSFT) and sell 10 years later for 100. Then they can own for a while and sell higher. As long as the company stock is increasing over time, that sentence is not necessarily correct.

The stock market is not a zero sum game like options. The mkt is a positive sum game in the long run. No guarantee that continues but it’s likely.

Options are a zero sum game except for commissions and fees….

[bcde]

"No disagreeing with you but having been investing for almost 30 years I've seen plenty of reorg/restructure that have gotten rid of old shareholders and start new again."

This is a very old trick of loan sharks. They first burden the companies with the massive loans and then at most vulnerable time, cut off access to liquidity. This creates insolvency and creditors take control of the companies. Then creditors wipe out the existing shareholders.

But Hank&co used every trick and bureaucratic powers to make it worse for his adversaries (like Lehman, ML, AIG, FnF) and favor his cronies. Hank brazenly boasts about this in his book.

The big difference is loan sharks try the tricks within the framework of laws but Hank&co used banking laws (HERA) to violate framework of laws.

BTW what legal principles prevent Gov from using banking laws to regulate airlines or hospitals? The same legal principles should have prevented the Gov from using banking laws to regulate FnF (insurance companies). Unfortunately shareholders never understood the evil plans of Hank&co. Besides Hank&co mislead the shareholders with all kinds of false assurances.

Not sure why the attorneys for plaintiff have never challenged the use of banking laws (HERA) to regulate insurance companies (FnF). This is the heart of FnF conservatorship problem. Unless this blatant violation of legal principles is resolved, there is no judicial solution. Shareholders of Insurance companies can never get any justice under Banking laws.