Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA latest via TimHoward717.com NOTE: the Russian font is not working on VW so check out the original piece here to view the article in the unadulterated form.
Once again a Rupert Murdoch publication strikes again with a Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) hatchet job, this time by Jonathan R. Laing in ??????? (Barrons). He starts his latest article with this gem-”The common stocks of Fannie Mae and Freddie Mac have been on a tear since our bearish cover story on the government-sponsored mortgage giants last year (“Fannie, Freddie: On Borrowed Time,” July 29).
We made the case that preferred and common shareholders of the government-sponsored enterprises, which were seized by the government in September 2008 amid the U.S. housing crisis, would likely get wiped out. And we still think so, despite the fact that Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA)’s common shares have jumped some 174% and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)’s, 190%, since the story. The $35 billion in Fannie and Freddie’s old preferred shares have also risen from about seven cents to more than 40 cents on the dollar.”
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I doubt many people will continue reading after that confession but if they do its safe to say they will do the opposite of what he advises if they have any brains.
But Let’s examine his piece a little further this should be amusing. Jonathan continues,
“The hopes of these players now rest on lawsuits against the government arguing that the old preferred shareholders are entitled to a full face-amount payment, and the erstwhile common holders are owed some recompense, because the Treasury treated them unfairly after seizing the GSEs. Specifically, the lawsuits contend that the Treasury had no right to enter into an amended “sweep” agreement with the two in the summer of 2012, which permitted the government to effectively take all of their profits. This supposedly illegal “taking” has already returned $213 billion to the government in dividends, with none of the money going to reduce the $187 billion that Uncle Sam infused into the pair to save them.”
There is so much wrong in that paragraph I don’t know where to begin. “because the Treasury treated them unfairly after seizing the GSEs.” So that’s what it’s called? Seriously Jonathan that’s what you now call the government trampling the rule of law and illegally seizing a private companies profits????
“Specifically the lawsuits contend that the Treasury had no right to enter into an amended “sweep” agreement with the two in the summer of 2012, which permitted the government to effectively take all of their profits. This supposedly illegal “taking” has already returned $213 billion to the government in dividends” And now Jonathan you do believe the government it was ok for the government to make a deal with the government to seize all of the private companies profits? Jonathan let me tell you and Rupert Murdoch something, I understand that you are blinded by your zeal to rid the world of Fannie and Freddie but to condone these Soviet-style tactics is revolting.
“This argument seems disingenuous. Forget the fact that the two companies were dead men walking in 2008, and Wall Street speculators lost interest in them until mortgage delinquencies began to decline, and housing prices stabilized in 2012, bolstering the GSE’s prospects. Only then did various Wall Street types turn into veritable Patrick Henrys and Thomas Paines, bemoaning government overreach.”
Jonathan it is not just wall Street speculators that are being victimized, and you know that. I personally know of numerous ordinary folks who bought shares prior to the 2012 sweep betting that the US housing market would recover. I also know of several small to medium size banks that were pressured into buying preferred shares just before the conservatorship was initiated. They suffered massive losses, and many are still holding. You know why you haven’t heard about them? Because they are afraid that if they speak out the government will exact revenge. You know what that tells me Jonathan? It tells me that we could use a couple dozen Patrick Henrys and Thomas Paines in this country right about now.
The fact that people live in such fear of their government is not what America was ever intended to be like. The fact that we resemble the soviet union Jonathan is because of journalists like you and media owners like Rupert Murdoch, who keep writing articles condoning the governments soviet style profit grab.
I could go on all night ripping your absurd arguments to shreds, but I think people get the point. I will say that it was nice to see you layout a blueprint to effectively nationalize Fannie and Freddie, destroy the U.S. housing market and put the taxpayers on the hook 100% for the next housing crash. The crash that surely would come soon after your bizarre scheme was put in place. Any more pearls you care to share with us Jonathan? By the way ??????? is Russian for Barrons. Give ?????? ?????? (Rupert Murdoch) my regards and let him know that we will be here shining the light of truth on his lies every step of the way.
Now that that’s out of the way I just want to say to our readers that I am working a series of posts that many of you have been requesting for some time. I will be exposing many of the lies that lead up to the take over and have continued right on through. I am hoping the first in the series will be up tomorrow, and there are several more lining up to go. Keep the Faith!