Replies to post #119029 on Fannie Mae-No Politics (FNMA)

[DickCheney]

Awesome post, Obi. Everyone should read, regardless of their position on the commons!

[darrell00]

Great post obit! As always we can count on you to dig up all the true facts. Thanks for your contribution.

[mrfence]

Brilliant overview of the big picture obiteridctum. Bruce Berkowitz of the Fairholme fund, Pery Capital, and many other huge investors along with shareholders such as Ralph Nader, Brandon Fisher,institutional funds representing police retirement funds all agree, and are openly opposing the governments collective actions against the true legal owners of the illegally nationalized GSEs. They've collectively invested billions to insure the right thing is done on behalf of the GSEs, taxpayers, and the economic foundation of the U.S.A.

[Always wondering]

Couldn't have been laid out any better. Well done sir.

[955]

Actually, the answer is quite clear. On the one hand the president and the congress do not support a return to privatization of the GSE's while on the other hand they 'seemingly' cannot come up with an alternative replacement for them either. There is a third possibility that is much deserving of consideration and more than that, a significantly likely outcome based on their actions thus far. They know what they want. They have a plan. They know it is in violation of standing constitutional law, but they do not want to rile the masses. So they continue along the path of status quo, which in effect is nationalization, whiling appearing to be searching for a solution. They now have in their possession what they originally set out to obtain.


"So what do we have here? Federally chartered, privately held shareholder companies with a public mission in a temporary conservatorship or a nationalized secondary mortgage market industry administered through nationalized Fannie and Freddie?

They cannot be both.

The answer is unclear at the moment since HERA 2008 and parts of the 2008 and 2009 PSPAs are still in force at the same time as the 2012 3rd PSPA amendment. It will take the currently filed lawsuits to cut through the legal Gordian Knot created by the enactment of the 3rd amendment to the PSPAs.

All PSPAs here:
http://www.fhfa.gov/Default.aspx?Page=364

The 113th Congress can be counted on to make things worse and they have done a brilliant job of that so far. Only one out of five made it out of committee and that bill advocates for a totally private mortgage and secondary mortgage market that will never be enacted. It is DOA."

[955]

Can you say, bought and paid for? Gain control of the media and you have control of the people. Repeat things often enough and eventually the people will believe it. There's another figure in history who successfully implemented these same tactics, the outcome of which was not pretty.


"Most of the media journalist reporting on GSE reform are a laughing stock. With unbelieveable blindness or blinkered foresight or biased political views, they do not see the real story that is present before their very eyes. In the relish to see Fannie and Freddie end and to support every negative thought going, they ignore the Executive Branch's successful effort to secretly nationalize two of the largest privately held companies in the world and to abscond scot free with their profits for government coffers (not taxpayers) while ignoring procedural law, due process of the law, the 5th Amendment of the US Constitution, just compensation to private shareholders, and a report of the benefits to US taxpayers. By September's end, 146 billion dollars will have been transferred to the US Treasury from the GSEs. What are those billions doing for us, the US taxpayers? Is the money being used to support the national housing recovery? There is no report. None at all. And so what is the use of saying the taxpayer is getting benefits when it really means it is going to the Executive Branch of US government and used in ways no taxpayer knows?"