MDVN deal should validate a market price for VRX at over $100/ share.
VRX has 5X Revenue of MDVN, so $14B X 5 = $70B - $30B VRX Debt = $40B / 348M shares = $114 / sh
Just prior to that, Hank Paulson stated to the PUBLIC that the GSE's were well capitalized to weather the current financial downturn. Then in a PRIVATE meeting with the Banking Elite, Hank stated that the Government was taking steps to wipe out the value in F&F, so invest accordingly (translation: short the #$%$ out of it.)
"Any realistic assessment of Fannie Mae's capital position would show the company is currently insolvent."
except they were not insolvent!!!!!!!
Your own words, YANK," If losses exceeded 1.45%, it would be insolvent."
This never happened, so they never were insolvent!
I agree that the Government was right to curtail riskier behaviors of the "TBTF" banks and the GSEs, but it was wrong to be swayed by politics to seize the private assets of the GSEs for the sole benefit of the "TBTF" Banks.
So by your numbers, GSE's had $102 Billion in cash, about $4.5T in low risk mortgages, and about $800B in higher risk mortgages (some of which the "TBTF" banks would be forced to buy back or pay penalties on). SO, PLEASE EXPLAIN WHY THEY WERE INSOLVENT???????
"If Jim rents a room in his two-bedroom condo as an Airbnb host, should he allocate 100% of the per square foot cost of ownership? "
Yes, he should! If it costs him $4000 per month to maintain his 2000 sq ft apartment and he rents out a 200 sq ft room. he should charge $400 minimum ($2/ sq ft) as well as an extra amount because this border will use more of the house than just the bedroom. (bathroom, kitchen, etc)
@EyeProsper, I believe that the NSA is storing every phone call, every text, every post on social media, and every comment on any message board, for just about everyone that chooses to use those forms of communication. 5 years ago, that would have made me a nut job, but today it is accepted fact.