I agree. This will be the last shakeout before crossing over $5. I still think it will close below $5 though.
You did miss something. There was a court ruling which will allow Fannie Mae to do discovery.
They are suing the Government on the basis of the unconstitutionality of the 3rd amendment, and for reneging on the agreement to take Fannie out of conservatorship when/if it ever became profitable again.
They DID become profitable, much to the government's dismay, and they want to be out of conservatorship and publicly owned. If they were publicly owned right now, they'd be a $20 stock all day long.
The "powers that be" (the REAL power in the world) can get anything done that they want to. They killed JFK, orchestrated 9/11. Sure, they can get this case dismissed. The media, which is their puppet, won't say a word about it.
I was afraid that FNMA would spike in the morning and drop like a rock. It is just going up in a controlled orderly fashion as more investors are reading the news and the reality of FNMA's powerful underdog position is just being realized.
Sentiment: Strong Buy
You probably live in a rural area. In Chicago, the police can set up road blocks and check ever car out without probably cause. "Your papers please!", just like Gestapo occupied Poland and Czechoslovakia.
I spent some time this weekend reading the government’s request to dismiss the Fairholme case against the Treasury.
My questions and thoughts focus basically on one issue. I do not see the necessity for the Third Amendment. The Treasury argues that it was necessary to assure the world that Fannie Mae would remain solvent. However, in August 2012 when the Third Amendment was put in place Fannie Mae (Federal National Mortgage Association) and Freddie Mac had already returned to profitability and it was very clear that not only would it be solvent but that it was about to generate large profits.
Therefore, in my simple mind, the Treasury and the Federal Housing Finance Agency acted for one reason alone. That reason was to prevent shareholders from sharing in the profits that these entities knew were coming.
If they get away with this ploy Fannie Mae / Federal National Mortgage Association will plummet to zero by 2017. If they do not, the stock has a very bright future.
I agree wholeheartedly. It will come out that the 3rd amendment penned by the U.S. Treasury in 08/2012 is illegal, and by the terms set forth in the conservatorship agreement, the twins shall be publicly owned once again since profitability has been attained. Our government is a fraud. A blatant fraud. This battle will go to the supreme Court. Without Freddie and Fannie, 30 year fixed-rate mortgages will not exist.