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Federal National Mortgage Association Message Board

  • inthemistindc inthemistindc Mar 8, 2013 7:35 AM Flag

    Putting the share price aside - Can we discuss the GSE's debt and path forward

    First off, I am a long term shareholder and an ex friend of one of its ex employees. First off, lets all face the facts that these companies are being demonized by the media and certain politicians not necessarily for political reasons but personal reasons. If the politicians and the Yellow media distort the facts ten what can we do but try an lobby a little truth to the GSE's. The media and politicians say that the GSE's were given a few hundred billion dollars but they are not explaining what the GSE's are doing with it. They are painting a picture to the American people that the GSE's have lost this money somehow and they must be punished for it by being dissolved.

    Someone correct me here, this money that the GSE's got from the feds was to backstop any runs that a bondholder might make through the nature of the security. In the past, the GSE's had very little of this reserve because housing was skyrocketing. But, when it crashed, some people ran to the exits and this money was there to cover these withdraws. Now that the market has stabilized, the GSE's don't really need as much of the "bank run" reserves and can start paying back on the loan - with some sort of gratitude (perhaps even double what it borrowed).

    So the GSE's did not eliminate the money it got from the feds, they used it to keep the real estate market in the us solvent. Good job GSE's - the public should know this and not what the propagandists are saying.

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    • Demarco has already stated that the GSE's will eventually wind down.

      • 2 Replies to frankwall04
      • This does not necessarily mean that they will wind down to nothing. It could simply mean that they will be diminished to some yet undetermined degree.

        Sentiment: Hold

      • Anybody can state anything so what? Who is DeMarco, is he the main authority? How much control can one individual have? There are many politicians who all wanted FNF in place as it is.

        If FNF has to wind down then what are they waiting for? Its all a drama. I am so tired of hearing this, it was so painful to go through such messages on AIG board and now again one has go thru such stupid thoughts and messages on FNF board as well.

        Why people can't see learn if they cannot think on their own? PATHETIC.

        Sentiment: Strong Buy

    • So sorry about the bad editing,

      So the next question is this: Does one individual (Demarco) not agree that this an appropriate method to drive real estate finance? I don't think he does and perhaps he could damage this delicate balance. From what I understand, the GSE's used to be a Federal agency, but it was made private by a ex OPM head named. Is it Demarco's plan to follow in this person's footsteps by re-crafting the method and then taking it as booty?

      • 2 Replies to inthemistindc
      • inthemist, you said in the past, FNMA used to be a Federal Agency, then was made private by an Ex OPM Head. My question are

        1/ Were the common stocks WIPED OUT due to the transform in the old days ?

        2/ If it was, so do you think the transform will repeat this time and once again, the common stocks will be WIPED OUT painfully ?

      • Sensible and sober thoughts. In fact, had it not been for this intervention the so called Great Recession would have got much deeper and we must credit this measure as a contributing factor not only in stablizing the housing market but also in stablizing and reversing the economy and putting it on the path to recovery despite concerted efforts by the reactionary Republicans to sabatoge the economy for political gains. Don't forget what got us into this mess originally and now the same culprit are after the growing F&F assets and have their lackeys to set the stage for their next looting and swindelng of the American taxpayers--all in the name of the taxpayers and reactionary rehtoric about Big Government. These politicians have no standards or principles other than serving themselves and their mega finance sponsors and masters. They will sell America and even their own mother for a handful of silver.

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