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Federal National Mortgage Association Message Board

  • donggui_jiang donggui_jiang Jan 29, 2010 12:08 PM Flag

    Does Uncle Sam need his money back from FnF

    If your answer is NO to this question, you are most likely a mental case. The question is HOW could the US get its money back. By destroying the stock holders of FnF? This may not be a money making plan. It may also destroy investor's confidence in other government backed businesses. By nationalization of FnF and bloating the government deficit? Obama proposed a budget freeze only two days ago. By selling FnF business at a discount to private businesses? Well, Uncle Sam will not get back his money from a fire sale. Plus what is the incentive of a fire sale of the monopoly unless our congress is totally corrupted and dumb? These two giants are just too valuable for the economy at this time. Investors should be awarded for their support.

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    • Whats the difference if they get the money back,they just keep printing,who holds them acountable,japan,china,no,the dum assesss keep buying there bonds,sooner or later a pig will be worth more then a bar of gold.

      • 1 Reply to killroy402000
      • It is very important for Obama to get money back from FnF. It may be the most essential matter if he needs a second term. They can claim to have inherited a mess. But people will not tolerate any excuses too long. From today's budget report, you could tell they cannot afford to keep FnF on the government's book because Uncle Sam could not afford it. Keeping FnF afloat is the only way to get paid back in time. Killing the currrent investors is like killing the chicken for the eggs.

    • the best way IMO for the TREAS to get back the infusions is indeed to not slaughter current equity holders

      but IMO - the most likley scenario is not death of equity -- or equity continuing to own FNM

      rather - the GOV/TREAS/WH will use the wrt for 79.9% I hope

      that would leave current equity owning 20% (common and maybe pfd force converted to common would have 20%)

      Then with FNM and FRE near monopolies by even more in the securidization biz --- their values go up to say 20-50 per share -- current number of shares

      Our shares would be cut to ownership of 20% - by the GOV/TREAS/WH issuing out 4x more shares --- or by some public plan that THEN included a reverse split to get current shares to be 20% and GOV new shares 80% (not a RS for NYSE purposes0

      Either way - IMO the most likely - I hope - scenario is we will own 20% of what will be a 20-50 dollar a share company (and in my view if I own 100 shares at a buck a share now - I would RATHER in the future be diluted but then own 20 shares at say 30 bucks a share)

      all a casino - this is wagering - as in Vegas - not speculating or investing .. but I like the odds here better then in Vegas

 
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