Replies to post #747376 on Fannie Mae-No Politics (FNMA)

[JOoa0ky]

This isn't an investment for you nor are you treating it as one.

You're treating this as if you're predicting what the blind folded lady justice will do... Is the Govt going to enter through the gates of hell?

There is absolutely no one on this board and that includes all of the JPS only holders who disagree with you about what happened here. It is morally, ethically, and legally WRONG.

However, where we JPS differ from those who are common only... We're making a bet on what is most realistically going to happen. It has nothing to do with right and wrong. That ship sailed a long time ago.

Statute means less than the constitution which doesn't mean much here; as government has done whatever it wants.

As for shares of common... Yes, I own shares, only common and enough that if fair value occurs its plenty. The great thing is.... even if we all get wiped out... its not going to change my trajectory. ie. less than 1% of net worth. And i've been in this trade since 2008 and was one of the first to recognize the cookie jar accounting going on - as i rolled the loan loss provisions and it was clear they were making it up. Between that and the deferred taxes. Anyway, I've also clearly stated, the the government has committed a fraud, since they control the companies and have rights to 79.9% of the shares, they should be on the national debt. I was first introduced to fannie and freddie in the 80's and i am well aware of what they do, how they do it, and what their real risks are. Which is why all the lunacy of replacing them has been garbage.. in that they provide liquidity into the markets and level the playing field which allows competition in 30 year mortgage lending. Look at it this way, their lending in 2005-2008 was problematic... but all the other years prior weren't... So people with existing mortgages were performing and amortizing their debt while the newer ones were in trouble; but not all of them; and they were collateralized. The problem was Fannie and Freddie were being required to reserve 100% of the loans, instead of lesser %'s (there was realestate under them anyway) So the government, created false losses... It was so easy to see.

but, i digress... anyway,

And, if its governments desire to crush commons... they'll certainly crush prefs; makes no sense to leave the hedge funds whole and eviscerate the little guys.