Posted on 09/06/2008 12:18:43 PM PDT by zeestephen
[Scroll half way down page for article]...“My feeling is, if the Treasury comes in with any kind of money whatsoever, shareholders of Fannie and Freddie will get wiped out or diluted away in an extreme manner,” says FBR capital markets senior analyst Paul Miller on Fast Money.
(Excerpt) Read more at cnbc.com ...
So, where is the Left Side media outrage over this scam?
Fact - $130 billion of FNM and FRE stock value wiped out in seven years.
Fact - Fannie and Freddie have been touted for DECADES as "safe" stocks that pay a reliable dividend.
Fact - America's older and most conservative investors bought Fannie and Freddie stock because they believed the federal government implicitly guaranteed the mortgages Fannie and Freddie bought.
So, will the Congressmen who oversaw Fannie and Freddie go to jail?
Yeah, right.
So, will the career government bureaucrats who ran Fannie and Freddie go to jail?
Yeah, right.
So, have we seen any elderly people weeping on network news programs because their savings were wiped out?
Yeah, right.
Imagine for one second what the coverage of this story would be like if Fannie and Freddie were REAL for profit public corporations that had been run by executives who donated to the Republican Party.
The GOP and free enterprise would be massacred by the press, just like they were with the Enron debacle.
But when the US Government causes a $130 billion stock loss by forcing two government "corporations" to buy "junk" mortgages, well, I guess that's ok.
Because, you know, their intentions were good, and they weren't motivated by greed.
The world wide financial loss directly linked to the collapse of America's "Affirmative Action Mortgage Experiment" is now...$500 billion!
In the eyes of liberal socialists, THE GOVERNMENT IS ALWAYS RIGHT — no matter who they wipe out and what cost to Americans, our wealth and our freedoms.
Washington is INDEED broken, and socialists, like Obama and his ilk, need to be STOPPED.
“So, have we seen any elderly people weeping on network news programs because their savings were wiped out?
Well, I always tell everyone who asks, never put more than 2% of your net worth in any one security. Something unexpected always happens to some company or other. A few years managing money will teach you that both bad and good things can happen, and no one can see them coming.
Bullish! No sign of recession here. Best time to buy... EVER!
I completely agree with your investment philosophy.
However, my point was that the media attention lavished on wiped out Enron investors is in sharp contrast to the complete vacuum of attention on wiped out FNM and FRE investors.
Plus, I don't recall anyone claiming that Enron was a “safe” stock” paying a reliable dividend.
McCain is a Socialist at worst and a Big Government liberal at best. So why are folks here not trying to stop him?
Let's review the facts, shall we?
McCain's campaign launched an advert. in early August 2008 claiming that "Washington is broken" and only John McCain knows how to fix it. (This is the infamous "original maverick" advert.)
Washington is broken. The problem is that McCain has been in Washington since 1983. The problem is that McCain has been in Congress for those twenty-six and one-half years.
On July 10, 2008, McCain declared his open support for a government-bailout of Fannie Mae and Freddie Mac. He told reporters, about FNM and FRE: "They will not fail, we will not allow them to fail."
On July 17, 2008 McCain said that he was open to bailing out General Motors...if necessary.
So let's get the facts straight here. For advocating a socialization of FRE/FNM's losses, McCain is as much a Socialist and Big Government freak as Obama.
Regardless of who wins in November, the only "change" that we, the taxpayers, are going to have is what's in our pockets, after Big Government (led by McCain and Obama) takes its cut in order to pay for bailouts.
“McCain is a Socialist at worst and a Big Government liberal at best. So why are folks here not trying to stop him?”
Stop him? There is one way to stop him. Elect Obama.
That’s the choice, at this point.
As someone else on this board has said, never put more than 2% of your eggs into any one basket. If you are not rich enough to buy 50 stocks, get into mutual funds.
Any voluntary investor who bought this stuff deserves the loss that he is taking.
Rabscuttle385, when will you learn that to the true believing GOP Kool-Aid drinker, being forcibly buggered is perfectly acceptable (Nay, will even be cheerfully welcomed!) so long as his assailant is one of his own?
{/sarcasm)
“So, will the career government bureaucrats who ran Fannie and Freddie go to jail?”
More like “career government sponsored entity” bureaucrats.
(The government bureaucrats don’t make tens of $millions as the GSE ones did while running the entities into the ground - well, at least not while they are stil in office).
To answer your question - No they will not go to jail. Most likely they will retire to a life of leisure on their estates in Maui or wherever else they choose.
I guess this Paul Miller guy has been sleeping the last few weeks. Shares Fannie and Freddie are pratically worthless right now. Anybody who stayed in these stocks knew they were taking a big risk.
Enron looked pretty good at one time. That is the folly of going by market capitalization and reported earnings alone. They said the same thing about Equity Funding.
I might have considered Freddie or Fanny preferred at one time, but it’s been pretty clear for the last 3 or 4 years that they were not prudently managed companies.
FNM at $7.04
FRE at $5.10
A number of sources are saying they will go close to zero and be de-listed.
Monday could be a blood bath.
Bubba’s bud Franklin (What me worry?) Raines is sitting pretty on a pile of dough. Gorelick, board of directors. The beat just goes on. Oh yeah, and Scooter lied.
You need to crawl back into your hole.
And I doubt you’d ever advise anybody to put their money in Freddie or Fannie. Those have been losers for the last two years. Anybody with money left in them SHOULD lose it. And they’ve already lost virtually all of their investment anyways so why at the MSM tears over this?? They don’t know that both stocks are in the $5 range now?
Is Barney Fag going to drag in Franklin Raines to explain how he made HUNDREDS of MILLIONS from Freddie Mac while running it into the ground?????
We all remember Franklin Raines. He was the lucky bastard who was the White House budget director under Clinton who happened to be sitting there when the GOP balanced the budget by cutting the capital gains tax and flooding the Treasury will hundreds of billions of unexpected money. Raines got to profit from the GOP brilliance by getting handed a job which allowed him to basically print money for himself - a quasi-government mortgage lender (that doesn’t lend money but does guarantee losers for other lenders).
Raines has been hiding for the last couple of years and for good reason. He should be the f’ing poster child for this housing crisis. He should be more famous than the former head of Countrywide Home Loans who was giving insider rates to his buddies on Capitol Hill.
How much are you going to lose?
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