Replies to post #14933 on Freddie Mac-No Politics (FMCC)

[realest]

doesn't matter, it'll still bounce.

[aharfo56]

Wow, good article...well, informative is more like it...it's not GOOD for investors...

Here's part of it:

One reason that Fannie and Freddie will never return to their earlier forms is simple mathematics: to become independent, Fannie Mae and Freddie Mac must repay the taxpayer dollars invested in the companies, plus interest. Even if the firms achieve profitability, it could take them as long as 100 years — or longer — to pay back the government. And almost no one expects the companies to return to profitability anytime soon.

100 years? Man....hope you're in it for the long haul, and that genetic research allows us to live to be 300 and look like we're 40! I'm just playing the bounce today and maybe tomorrow. There was also a huge dip from $5 a share to .27 a share when the government intervened, but the subsequent spike went up to $2.95 and many people made the best trade of the year at that point...

[Vi]

It can be taken as a contrarian indicator too. The options
on Fannie and Freddie called "common stock" are currently
underpriced, as this fear is hitting major media. :)

Common stock is a privatization option.

[aharfo56]

However, the GOOD NEWS mentioned in this article is that there are no plans to do anything to their current structure, and they won't even discuss any potential changes until the end of 2009. Until then, you can play the dips...heck, even in December one could have bagged a nice profit when it went down to .40 at the end of November and spike up to 1.21 again...however, the troughs and peaks are getting smaller and smaller....

[trunkmonk]

sounds like they blame fre and fnm for the forclosures that were caused by none others than the ones who want to keep these 2 under thumb. amazing. we will teach them to not let us screw up again.