Replies to post #743169 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Anyone who assumed that the government would act strictly in accordance with the law - instead of just ruthlessly seeking its own advantage - has been wrong for the last 10 years.

It's even worse. Actions that Treasury can take to dilute the existing common to near zero, namely converting the seniors, are 100% legal.

The mistake was to believe in justice.

The mistake was to think that a subjective definition of "justice", which varies from person to person, would matter when it comes to what actually will happen.

The Supreme Court said that the NWS was legal, therefore by definition it is. The rule of law was followed, just not in the way that any of us anticipated.

Acting as if "the rule of law will be followed" and "common shares will trade at $15" (or whatever dollar amount you want to put there) are synonymous has been and will be an expensive mistake.