Replies to post #777160 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

ok
you saw my thoughts

if things are that bleak for JPS - I assume you agree they are bleaker for common

R U long any shares of common or JPS - and if so - why given what you posted ?

[kthomp19]

Government will not want to enrich those who have been a thorn in their rear with court cases for 15 years.

This includes existing common shareholders. If the government won't want to enrich junior pref holders, they also won't want to enrich the existing common, and they can easily accomplish that by converting the seniors into commons.

I imagine it would be a cash offer, most likely, , possibly prior to release. FHFA and the companies can say it is a strengthening of the companies balance sheets prior to release

Another logic fail. A cash payment would weaken the companies' balance sheets.

and they could even say that government mandates that they be the only pref holder due to the back stop of treasury

What? Where is this mandate written, and why hasn't FHFA invoked it over the last 15 years?

Therein maybe freeing the warrants (bye, bye) and reducing the seniors the government owns.

Pure wishful thinking with no logic to back it up. And see above regarding enriching "those who have been a thorn in their rear".

I like being positioned in both common and JPS, but at lowest price possible. So those getting their cost basis down, no matter C or JPS, are doing the best thing.

I guess you have come off the idiotic stance of "those guys want to push the prices up so they can increase their cost basis"?