Senators and Congressmen helps big way to the businesses getting contracts from other countries. Deregulation like removal of Glass Steagal & "mark-to-market" caused 2008 crash. Senators, Congressmen & Government do create environment to grow businesses. All those slogan government does not create growth is big myth. Ask any defense company, Boeing, Auto industries how they are helped by Senators and Congressmen in getting businesses outside USA. Same GM/Ford car is sold twice the price of US. They make huge profit in Asian countries. See China is clamping on Mercedes Benz & BMW for their high prices there.
A friend of mine who is design of fertilizer plant in India told this. Since India does not have main raw materials natural gas for fertilizer, India is looking into building fertilizer plants in other countries where natural gas has huge amount of natural gas & cheap. In order to get fertilizer, you need huge supply of natural gas for 20-30 years. US is the right place for that.
The unrest in main street is increasing because of unemployment. Many more Ferguson like riots can erupt in many town. The recovery of main street is sputtering. FED has done its job with stimulus of $85B per month. Trillions of dollar is still on hold in sideline. This is time to bring that money in the real estate by releasing F&F and also road/rail construction. Only real estate & infrastructure work can stimulate main street then only other manufacturing industries will pick up speed. See auto industry is running out of steam. If the politicians in DC just kept fighting with each other, this recession will go into depression because FED is out of bullets. In two months, It will too late for FED or F&F to do anything. Gov has only two bullet left - release F&F to give speed to real estate and infrastructure build out.
Other idea: Natural gas based fertilizer plants: Whole world needs fertilizer and US has huge natural gas to build hundreds of fertilizer plants in the US. You cannot ship natural gas to other countries and have economical fertilizer plant there. This fertilizer manufacturing job cannot be shipped outside for ever.
If Ackman announce number of shareholders contacted him to become part of lawsuit which may be thousands, that will earth shaking PR move by Ackman. He can go on CNBC on Monday saying that without his solicitation thousands of common people are contacting him become part of this fight to stop brazen stealing from common Americans.
Only 15% of common stocks owned by hedge funds or institutions. Rest are owned by retirees, Vets & taxpayers those who voted for Democrats. Ackman is getting bombarded by common shareholders to become part of lawsuits. More Grannies, Grandpas, VETS are contacting them. Thousands of people wants to join the lawsuits. Ackman should put number of shareholders contacted him since yesterday. That will huge PR triumph for this case.
Youths (because of Snowden), retirees, VETS & common taxpayers are not voting for Democrats. Democrats' defeat will be spectacular this time.
For 3R, you need 4th R.
Gov is completely cornered & trying to keep GSE longer under conservatorship by giving few dollars to Preferred. That's the reason Ackman lawsuit is essential. Other factor could be- he wants to dump FMCC because Gov can merge FMCC to FNMA by giving lower value to FMCC. Mater-of-fact, both could be true. I added FNMA when Ackman was short. I have invested based on my analysis NOT Ackman.
His lawsuit has huge benefit for common. Only 12% of common might be owned by hedge funds. Rest are owned by taxpayers, retirement fund, Credit unions.
Treasury & WS will never let their dirty laundry exposed. Therefore, it in their best interest to let GSE go free. WS needs GSE around so that WS can sell their junk to GSE in future too.
Based on Q2 report, it looks release is around corner. Treasury/GS will never expose their dirty laundry. It's in best interest of treasury & WS.
Just saw a dream and woke up - Fannie is released.
That's true. I am going by FNMA filing. Even with FNMA filing, FNMA has paid draw + 5% on draw for 4 years. FNMA started paying from 2013, so donot count 2013 or 2014. Whereas WS paid about 3% on bailout amount.
Berko sold to Icahn. Now it's reported in the SEC filing.
$130.5B (Total Dividend) - $117.1B (Total Draw) = $23.4B
5% of $117.1B for for four years (2009, 2010, 2011, 2012) = 0.05 x $117.1B x 4 = $23.42B
5% of Draw for 4 years is equal to extra money treasury received. Perfect condition to release of FNMA.
Sentiment: Strong Buy
Illegal is illegal. One can argue several other way to save economy. There was no need take over of GSEs. Treasury should have taken over CITI & BAC into conservatorship & use them to cleanup the mess. That would taught lesson to other banks.
Only move treasury left is to release GSE to hide everything. The bailout money is paid. The warrant will not exercised. Treasury will keep $200B for giving warranty to MBS issued by GSEs.
Treasury will never release pre conservatorship document which will show GSEs were not going BK. GSEs was taken over to support banks. That is illegal in the rule of law but it was correct move in the rule of economy. Without GSE's conservatorship, CITI, BAC, GS & JPM would have gone bankrupt first, then GSE.