Replies to post #837707 on Fannie Mae-No Politics (FNMA)

[TightCoil]

Do you mean
Right or wrong, new investors in Fannie/Freddie won’t care how old equity got diluted. GM wiped out shareholders, came back with a clean cap table, and markets priced it normally. If gov’t steps back and the model’s sound, the multiple holds. Markets price forward, not backward. ? ? ?
Is that what you mean, that:
Right or wrong, new investors in Fannie/Freddie won’t care how old equity got diluted. GM wiped out shareholders, came back with a clean cap table, and markets priced it normally. If gov’t steps back and the model’s sound, the multiple holds. Markets price forward, not backward. ? ? ?

[FuturesTrader006]

How is that the same situation didnt GM go bankrupt?? That is def a different situation in terms of dilution and wiping out shareholders...

[Lionscantwinagame]

Comparing GM to Fannie & Freddie is pretty absurd. The government lost 11.2 billion from their bailout whereas the government has made 301 billion on 189 billion loaned out. GM was literally bankrupt. Fannie & Freddie have capital exceeding 160 billion right now in cash.