Unethical doesn't matter in this game.
If something is unethical, who cares these days? Corporate / Government entities don't give a crap.
The biggest issue with everything modesthind has said is similar to your point.
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At this time, what is LOGICAL?
Logic puts everything into perspective, and though we do not wish to believe it, the government bases their choices on logic. (As do the hedge funds, and so on etc.)
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Logic... lets see, RJ you bring up a point:
*5 years of shares being near worthless, why would ANYONE destroy these when they finally gain potential value?
The only reason would be if they can benefit from it.
Are there any benefits from liquidating F&F? No. Not for the government, not for the share holders, not for America.
Okay, so congress is messing with us when they throw around the term liquidation, and even Corker / Warner should KNOW THIS.
*What is the likely hood of F&F having the commons wiped out like GM?
None. The warrants for the common shares (79.9% at 0.01 penny) is in case F&F cannot repay the government, in a situation where the company has little to no value.
In F&Fs case, they are (or potentially becoming) the most profitable companies in the world. No one in their right mind wouldn’t want a piece of that pie.
*Media Coverage: If this was a dead cat bounce, or any other similar event that indicates a ‘dead stock’, media would have moved on. It hasn’t.
*The documentation the FHFA has from the initial start of the conservative ship, and especially the 2012 FHFA report released in the last 60 days, these documents are must-reads. They show without a doubt what is coming. The only doubt we get these days is from crooked congressmen who are likely benefitting themselves.
*Consider the fact that Obama / Congress put into act a bill that does not let us see their stock trades anymore, except in the physical record books. Wow, now that is really wrong. Push one bill, create a new bill that won’t go through… that even congress admits has a 0% chance… then buy yourself some stock for cheap. (this occurred in mid April, a month after the stock exploded the first time and news was huge on it.)
Would you do it?
(If you said yes, shame on you! (O_o)
*5th Amendment rights are coming into play soon…
*Mel Watt was nominated by Obama, coincidence when everything else is happening?
*F&F have been around for about 80 years.
*F&F management is acting ‘very positive’ right now, regardless of what they say, the CEO seems quite pleased. If you were expecting a government ‘takeover’ of the company, or that your company was going to be liquidated, would you act this way?
And the last point, Do you trust your government, or more so, Congress?
If you answer no, or maybe, consider all that has been done in the past, how quickly it seems they might change their minds on a topic. Consider all the manipulation congress performs… then ask yourself.
Why should you believe the words of politicians who choose their wording based on the sole consideration that if they don’t do what you THINK they will, they still did exactly what they said?
Anyway, the facts are in the documentation, the logic is pretty well laid out here I think. I probably missed a bit, wrote it pretty fast.
-Z
NOTE: I am long but also flip FNMA. I constantly test my own ideas of this situation and you will often see I post NEGATIVE thoughts on FNMA, mostly because it must be considered. I'm no negative Nancy though, not a basher. Believe it.
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