Bills will be continued to be introduced and tweaked. This will go on and on until finally one of these tweaked Bills finally passes.
You will wake up one day and turn on the news to hear about the Bill being passed to shutter the GSE's, then you'll turn on the computer and watch the mother of all tankings.
I personally think the few hedge funds that own this mess are very seriously considering dumping everything.
These guys dont want to be involved in a lawsuit that will likely last years. They'll simply cut their losses and move on.
Fairholme Capital IS a hedge fund, one of the biggest that has invested in the GSE's and they, along with Perry (another hedge fund) have INITIATED two lawsuits, appear willing to be involved for years, and have not sold in order to move on....i might mention that Perry and Fariholme are seeking declaratory and injunctive relief, making their suits "cleaner" in many respects.
Who are you kidding? If Congress screws us like that, it's a Legislative Taking, covered by the Takings Clause, and they will owe us the full fundamental value of our shares ($160 per share at P/E of 15.) Bring it on!
There is no higher authority in U.S. legal matters, than the Constitution. We also haave Tort Law in our side.
considering the same people keep proposing the same bills the last 5 years and have tweaked those bills to be more "passable"........ it still has yet come out of subcommittee.... yeahhhh.... no worries. also if by some redgoke world they wound down fnf.... the shareholders will be compensated which is still more than the current 1.46 value.
It sets a bad precedent. Give tax payers money and then let it survive. Why?
On next down turn, there will be need for billions again.
All the big banks got 25 billion to survive. Now to big to fail is not allowed, banks must have more reserve.
Housing bubble occurs every10 years, in Japan the price of $10,000,000 condo in 1980 is now $2,500,000. Because in Japan there is no QE.
It can also happen here. Why is QE, buying $75,000,000,000 of mortgage backed security each month, for which there are no buyers.
Please look at the portfolio of hotels of stock symbol BEE.
Stay away from gambling against the house.
L. W. Chi
these companies that make billions shuttered? if that happens, this won't be America any more. your thought process is screwed up completely on this. I am concerned for you.
Sentiment: Strong Buy