Replies to post #9794 on Fannie Mae Preferred S (FNMAS)

[Joe Stocks]

Dave, I find the whole Fannie and Freddie saga interesting. Currently I am very heavily invested in the industry. Some fannie and freddie, but much more in what may be those that replace some of what they do. Why not more Fnf? Because the downside is zero and the government is on the other side of the trade. As evidenced by the website I set up, and the FnF facebook page, when I get interested in something I really do get very interested.

Negative about the situation? lol! I think I just add some balance to the happy hopefuls here.

...and, you guys are just fun to debate with.

Beta, I do not want to take the time and go back to look what i sold those shares for, but it was probably around $3 a share on about the 65% of my holdings I sold a while back. As I recall I had a triple on them, and unlike some other here, at my age I would rather bank some profits when i have them because that is how I make my living now. Sure, I would I have liked to have held longer but I felt it could go either way at the time. I find it best longer term for me to stick with my plan. Opportunities like Fannie and Freddie to not come along often. Zero or hero doesn't work for me. When I was younger, yeah...but not now. Thanks for asking though.

[44centsAKAchoccake]

Umm, sell portfolio, raise cash. They've been reducing their portfolio fairly quickly in the last coupla years. That's one way to raise cash.

Pay dividend, use cash.

But, if it's a big one-time sr. pref. dividend payment, borrow money at a low interest rate to raise cash, use that cash to pay dividend.

I think that's what they said they did.

None of these transactions affect book equity capitalization. Sure they took on more debt, to make a big one-time payment, so what.

[littledevils90210]

He is at a mindset where he thinks the treasury is getting a check, cash or gold bars...he does not understand how all this work...kinda like fund accounting....the gov. Balance sheet is an excel spreadsheet....thats it...its all debits and credits....nothing tangible or real changes hands. All these bailouts are all a deduction either debit or credit to an account...and increase either debit or credit to another account somewhere....


So yes....there is an offset but its not real...no cash was credit off or no debt was created....debits and credits...thats all...reduce dtas and debit xxxxx...then on gov side...debit cash and credit xxxx....community college accounting knowledge....go figure...devil

[stockanalyze]

when joe appears with his sad and twisted rant, i know we are going up soon. cheers.