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Federal National Mortgage Association Message Board

  • mateintwo mateintwo Sep 8, 2008 3:59 AM Flag

    The government is stealing our money!

    Shareholders unite!
    The government destroyed FNM/FRE by 1) allowing non-owners (shorts - naked or not) to destroy the share prices to such an extent private capital raising was virtually impossible 2) Strong-armed and pushed the GSEs to make more loans than were prudent first to encourage homeownership and later to keep the mortgage market as liquid as possible.
    And now the coup de grace: The government not owning one share, totally disregarding the rights of and obligations to shareholders, plans to make FNM/FRE into a kind of welfare institution for affordable mortgages by lowering the profit margins (spreads between financing cost and loans) and throw in the kitchen sink when calculating profits going forward while paying the tax payers 10% on a preferred issue ahead of regular preferred. Only in America!
    Of course we were suckered into invest in pfds of FNM.FRE (GSEs supposedly tightly supervised by the government) with ratings well above bank pfds at the time of the IPO.

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    • I agree. Some foreign governments nationalize (steal) assets and our government just did the same with its TREASURY SENIOR PREFERRED STOCK PURCHASE AGREEMENT. CASH ADVANCE (payday loans) firms look good compared to this agreement. Sad day for America when the government steals from some citizens to give to other citizens. I will NEVER trust anything this government says/does again. Mr. Government, you stole from me this time but there won't be a time #2 for you to steal again. INVESTORS BEWARE!!