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chessmaster315

02/01/23 10:19 AM

#746876 RE: familymang #746867

I have no idea how you arrived at those conclusions.
First, Scotus (Collins vs Yellen) was a remand, not a denial.

And that makes the rest of your conclusions suspect, as they are all based on that.

Of course, if you go looking for reasons not to buy commons, you can certainly find them, and ignore all the reasons to buy/hold commons.

We all love to "justify" (ie, rationalize) our choices, including this one.

Its my unsubstantiated opinion the Collins was not all that bad for shareholders, but, it was not the outright victory many investors had hoped for, so they sold out.

It mostly had to do with "time" and many investors got tired of waiting, so they dumped shares. I get it. No one wants to wait forever.

But the reasons the government did not put Fannie in bankruptcy are still valid today.

The way I see it, Fannie is earning money, mostly every quarter, and the government is no longer sweeping those profits so they can be used in at least part, to recap fannie.

Eventually, we will either get a victory in the courts, or a political victory, because leaving fannie in cship is a bad idea for the government as well as fannie.
Timely release of fannie and freddie from cship, could well prevent a recession or even trigger a boom.
Remember, housing often brings our economy out of a recession, and housing isnt really possible without financing, thus, fannie and freddie.