Worthless Opinions on Freddie Mac and Fannie Mae
Freddie and Fannie Return to Stardome
Published: June 5, 2013 3:29:55 PM PDT
There a number of articles being posted on Yahoo and Bloomberg and other sites concerning opinions on Freddie Mac and Fannie Mae that state these stock are worthless. It should be stated that it is these opinions that are more worthless than three-dollar bills. Most of these analysts do not see the forest from the trees, so the following is offered to serious investors.
1. Both Freddie Mac and Fannie Mae are PUBLIC companies, the Federal government cannot close them without many investor lawsuits.
2. We still live in a democracy with a free trade system. The Federal government can not start taking over public companies. They do that in communist countries and dictatorships.
3. Both Freddie and Fannie are now earning significant sums of money, and technically the government has no right to continue taking the profits of these companies beyond the repayment of the money given to them plus interest.
4. The U.S. Federal government is treating the public companies of Freddie and Fannie different from other public companies like AGI, the auto companies, the banking industry, and brokerage firms which were lent significant sums of money by the government in the past. Taking Freddie and Fannie over or trying to liquidate them will not stand up in court against the public investors of Freddie Mac and Fannie Mae.
5. The Republicans want to liquidate Freddie and Fannie because they are sending significant monies to the Federal government thereby aiding the increase the size of government, which they are against. The Democrats want the government to keep all the money coming from these companies so as to help with the national debt and the sequester budget cuts. But when investors see massive monies being sucked out of these companies above what was given, they will be turning red, or should I say green, because investors lost
Sentiment: Strong Buy