Replies to post #68 on Freddie Mac, 8.375% Non-Cumulative Perpetual Prefe (FMCKJ)

[philipmax]

That's why these issues are so exciting.
There is always a chance that someone who is well connected in Washington will grab these entities for themselves (think Carlyle Group, or Blackstone, or Blackrock and such, perhaps). If they grab these, they'll take them away from us with UNE-GOTTZ (sic) with regard to the public good or to shareholders' rights.
They can do so because... THEY CAN!

Other than that threat, we are look pretty good here.

[philipmax]

I went to FNMA hub board. They talk too much. They list 1000 or more entries per day. Most are useless.

On a more troubling front. Today the FHFA announced that there are accounting difficulties with the write-offs. The implication from Bloomberg article are that F&F will be compelled to write off so much of their mortgages that they will wipe out common stock equity. Scary prospect, considering that the accounting rules are arbitrary and easily manipulated by political expediency.

I never commented before on QE3, but, by the wording, I get a feeling that the FED is slowly absorbing the toxic mortgages from the banks to free up their (the banks') capital. At some point the FED will turn to F&F and "stick the garbage on F&F's front door.