Replies to post #174330 on Fannie Mae-No Politics (FNMA)

[crawford2012]

obiteridctum, outstanding post. Self explanatory and backed up by facts. If I may humbly add this point to the readers:

We know that the market is crying for 30 years mtg. Taking FNMA & FMCC away will kill this as there is no alternative.

Putting FNMA in receivership is out of the questions. Way too many things going on that prove we are 180 degrees away from that ever happening.

Private money is not going to come running knowing that are going to be at first loss position.

Govt is not stupid as they know abuse will take place big time, this is why they are not giving it up with a blink of an eye.

This is why it has been very difficult to address the issue.

FNMA is not just and American issue, China and other countries have their hands in the cookie jar and they are not going out empty handed. Recent articles and reports made it clear that this abuse of FNMA is another tactic to get at the Chinese.

When Obama says we are going to wind them down, what do you think those who are invested in FNMA going to do...they will sell their shares to get out with whatever money they can get.

Knowing that there is a law in this country and no one is above the law is what should put peoples mind at ease.

since we don't have a choice now as it is too late in the game, I am not very very upset about the sweep, in a way the treasury wanted to get their money back in the name of taxpayers....but once we are done paying our debt...if they continue to do so; it is going to be a major issue.

Thanks Obi, really good post...Keep it coming!
Crawford!

[chessmaster315]

Our govenment has no power to declare a private, profitable company into receivorship, and overstepped its bounds by what it has done so far with fnma as eviced by multiple lawsuits against the government for doing just that.

Obit is, as usual, correct, in that the laws do permit a move from cship to receivorship if certain conditions exist, none of which are present with fannie.

I thank Obit for his research and wisdom on FNMA shareholder issues, and his opinions are a significant factor in my decision to invest.

I hope most of you understand the term obiterdictum or just "dicta"
(or dictum, the plural form).
You see, many judges decisions are used by lawyers as precedence, so that lawyers can argue that what happened in so and so case has to happen here. (if the case is considered precedential). On the other hand, the judge often inserts his opinion in to the case and does not expect his opinion to be used by other lawyers to argue to win their case...its just dicta. If Supreme court justice, Roberts, likes "red" cars, this does not mean we all have to drive red cars because Justice Roberts loves red.