Replies to post #704378 on Fannie Mae-No Politics (FNMA)

[jeddiemack]

Of course the government is a liar and full of liars.

But the reality is ...

the government lost $0 money in the gse's

further, no depositor lost any money in any failed bank.

finally, the health of the economy and the gse's are dependent on the full faith and health of the US.

In a sense the US government back stops everything big. Whether its Duke Energy... or Cal Trans... or Eversource; or in other larger player... Bank of America.... so goes America so goes these companies.

As far as invested capital... All the government has to do is return the $$ it stole net of what was crammed down it and they have plenty of $$.

Keep n mind from operations... the GSE's were never cash flow negative and the loan portfolio... they had... largely performed. Without issue...

[kthomp19]

Because what insane investor would possibly be as stupid as we have been all these years in believing the government when they told us in 2008 that the conservatorship would be temporary.

You and I own FnF shares. So do thousands of others.

Your points clearly have not universally prevented investors from buying the shares. It has, however, certainly kept the prices down.

That's why I think that if the government's past actions prevents capital from being raised then FnF will still be in conservatorship in 2045. And if they don't, the worst they would do is push the offering price down.