Replies to post #6926 on Fannie Mae Preferred S (FNMAS)

[Joe Stocks]

It is business, they cannot take assets that belong to us and say "oh, it's just politics" - it's theft.

At this point it is all politics. We need a decision for either the treasury of congress to be made whole. I find it puzzling that NO ONE screamed 5th amendment taking on August 17th when the treasury stepped in and demanded all of our net worth now and in the future as a dividend for the senior preferreds.

It now will take another political appointee and agreement among our elected officials to make that right. It doesn't get anymore political than that. Keep in Congress can the treasury the right to basically seize us. Dipping into insolvency by law required that we be placed into receivership, which would have meant liquidation. The government chose conservatorship as an alternative to keep the housing industry intact. Many in government don't see it as a taking as their was no value in the enterprise when it was put into conservatorship. They see it as the only reason FnF survived was because of the taxpayers guarantee. Geithner said the equity holders would not be allowed to profit from the taxpayers guarantee. It doesn't get ny more political than that.

[j5ohnny]

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It is business, they cannot take assets that belong to us and say "oh, it's just politics" - it's theft.
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It's been theft from the beginning of c-ship and nothing is ever done. ...They do as they please. Banks selling crap loans to FnF was theft. Paulson's insider trading scheme prior to c-ship was theft. The decision to put FnF in a c-ship was theft, along with the 79.9% warrants was theft. The 10% divi was theft. Forcing FnF to borrow funds to pay the 10% divi was theft. A loan agreement that states the principal can never be paid off is theft. The use of g-fees to pay for the payroll tax credit was theft. The amendment to sweep 100% profits is theft. What about de-listing? We are along for the ride.

[feralcomprehension]

" - it's theft."

It all depends on your perspective. The gubmint could take the position that "Had we NOT interceded the companies would have gone bust and you would have ended up with nothing anyway, so the net result if we run these companies into the ground by 2018 you're in the same spot you would have been."

I'm long, and I'm not saying that the above position is righteous. What I *am* saying is that if you're counting on the government to do the right thing, well.... "Hope is not a strategy."