Author Topic: Is it just me or are there actually two forums on this site?  (Read 2053 times)

cherzeca

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Re: Is it just me or are there actually two forums on this site?
« Reply #20 on: November 17, 2019, 12:40:18 PM »
@Cameron

ouch.  dont know where to start, so I wont

Ya not saying I know much about the stock but those were my impressions reading the news.  The position in it was a starter to incentivize diligence.

all good...though reading the news can get you into trouble


cameronfen

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Re: Is it just me or are there actually two forums on this site?
« Reply #21 on: November 17, 2019, 12:47:05 PM »
The position at that point was limited to 80% only because otherwise, FRE and FNM would have to be consolidated on  the governments balance sheet, which would ave cracked the debt ceiling (at least thatís what I recall).

Anyways, I have spent more than 2 h on this and still donít know what to make of it. I think itís basically a political bet and if the political wind blows in a different direction going forward before it is privatized, I think the status remains as is, which pretty much would be the best for any stakeholder (government, homeowner) but the current shareholders.

Thatís why this is an ďoddballĒ and not a regular value investment, imo.

Sure that could have been the stated reason, but I think they could have raised the ceiling if they wanted to.  IMO and maybe itís not valid for Fannie Mae, but for the US government to nationalize a business is basically a third rail in 2007.  Thatís likely why they didnít bother.

 
Quote
if any private entity bailed out the banks or Fannie Mae they would have taken ownership of the company outright
But if any private entity would have bailed out banks or Fannie Mae they would have required share holder approval and/or go through a bankruptcy process where bond holders, perf holders and equity would have had some say in the outcome.

Where you alive during the Great Recession?  (Jk) Bondholders would have accepted massive haircuts would have happily accepted a expedited bankruptcy process and equity holders would surely have no say (and wiped clean) in the bankruptcy of banks nor Fannie and Freddie.  No way anyone would have argued with a white knight as people thought like the world was ending.  Instead bondholders were made whole and equity holders still maintained some ownership share. 

muscleman

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Re: Is it just me or are there actually two forums on this site?
« Reply #22 on: November 17, 2019, 01:21:30 PM »
Now we have two threads on Fannie and Freddie, and we have over 1420 pages.
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Hielko

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Re: Is it just me or are there actually two forums on this site?
« Reply #23 on: November 17, 2019, 01:30:49 PM »
Quote
if any private entity bailed out the banks or Fannie Mae they would have taken ownership of the company outright
But if any private entity would have bailed out banks or Fannie Mae they would have required share holder approval and/or go through a bankruptcy process where bond holders, perf holders and equity would have had some say in the outcome.

Where you alive during the Great Recession?  (Jk) Bondholders would have accepted massive haircuts would have happily accepted a expedited bankruptcy process and equity holders would surely have no say (and wiped clean) in the bankruptcy of banks nor Fannie and Freddie.  No way anyone would have argued with a white knight as people thought like the world was ending.  Instead bondholders were made whole and equity holders still maintained some ownership share. 
During the GFC I was happily playing poker without looking at the stock market at all ;).

But sure, probably plenty of bond holders would have accepted a big haircut at that time and be happy that they got anything at all. But the thing is, they didn't go bankrupt. And there would be no way of telling what would have happened if they did. There is no such thing as an expedited bankruptcy process, and if you look at how long for example the process of the Lehman Brothers bankruptcy is taking (it is still in progress as far as I know!!!) it is certainly possible that by the time they started selling assets the value of those assets recovered.

finetrader

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Re: Is it just me or are there actually two forums on this site?
« Reply #24 on: November 17, 2019, 01:39:21 PM »
Is it just me or with this  thread there is actually just one ?
« Last Edit: November 17, 2019, 01:41:24 PM by finetrader »
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John Hjorth

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Re: Is it just me or are there actually two forums on this site?
« Reply #25 on: November 17, 2019, 02:23:34 PM »
Now we have two threads on Fannie and Freddie, and we have over 1420 pages.

Perhaps it's time to start a new topic to discuss in depth, why and if we should have two topics about Fannie & Freddie, a bit like the "How many forum members does it take to change a light bulb?" joke about message boards.
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given2invest

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Re: Is it just me or are there actually two forums on this site?
« Reply #26 on: November 17, 2019, 03:53:01 PM »
lol did this just turn into ANOTHER thread on FNMA/FRE?

bwhahahhaha get a room.

Gregmal

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Re: Is it just me or are there actually two forums on this site?
« Reply #27 on: November 17, 2019, 04:49:03 PM »
Now all we need is another "what do you think of the politics section" thread...

cherzeca

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Re: Is it just me or are there actually two forums on this site?
« Reply #28 on: November 17, 2019, 06:16:48 PM »
Now all we need is another "what do you think of the politics section" thread...

at least if this thread converts to politics it wont be about the GSEs