I want to share what I have learned through many discussions over the weekend with those very well versed in these proceedings. The government has laid all their cards on the table in this motion for the protective order. They have used every defense they have to get out of complying with Fairholmes discovery requests. Many of those I spoke with thought they would have saved much of this for the actual trial. This confirms what we have been saying for weeks now, that if they are to comply they will essentially forfeit the trial. This is it, the entire trial possibly hinges on this protective order. I say possibly because it is also likely that Fairholme already possess enough evidence to sink the governments claims in trial regardless of what is found through discovery. As has been the case all along, things have been progressing far quicker than I ever imagined.
The consensus I have gathered is that Fairholme will essentially shred the government motion for a protective order. The government continues grossly to contradict themselves, such as their claim that they can not share anything to do with past, present and future profitability of the GSEs without essentially bring the worlds financial markets to ruin. In reality though the government had shared in depth the profitability forecasts of the GSEs when it benefitted them in terms of federal budget considerations. They have even bickered over just how much of our profits they will have available for years to come. But when the senate was considering a bill to wind down the GSEs, they conveniently released a totally bogus stress test result showing how horrible the GSEs would fair in another housing crash. This shows that the governments claims in the motion are nothing but more foolish lies.
Remember this is the 3rd attempt by the government to squash discovery, and they have been shot down every time. Judge Sweeney has made it more than clear that she favors very broad discovery, and she will likely squash this final attempt by the government to cover up the details of what is obviously the biggest case of securities fraud the world has ever seen. It is becoming clearer and clearer that the government made a huge misstep in the way they went about filing the motion to dismiss.
I can not stress anymore the perilous predicament the government is in right now. If they lose this motion for a protective order its lights out for the governments scheme to defraud us. Keep the faith!