I am posting this morning to ensure that my second post last night doesn’t overshadow my first. The PLAINTIFFS’ RESPONSE TO DEFENDANT’S MOTION FOR PROTECTIVE ORDER in the Fairholme lawsuit is big news. I am going to re-copy and paste one item I added there last night.
“Government’s assertions, backed by sworn declarations, that the financial markets could be destabilized”by public disclosure of the Government’s internal “projections of the future profitability
of Fannie Mae and Freddie Mac (or lack thereof) under a range of economic, business and policy scenarios,” Watt Decl. ¶ 7, raise this all but inevitable inference: either the Government’s
public reporting of precisely this same type of information has been misleading, or its alleged concerns about market destabilization are a pretext for some other reason(s) to conceal the requested
information. Moreover, FHFA and Treasury officials have publicly disclosed their decision to wind up the Companies and not permit them to rebuild capital and exit the conservatorships.
5 The financial calamity the Government predicts has not come to pass.”
Note they start off by pointing out that the Mel Watt has offered these brazen lies in sworn testimony. Remember this excerpt from my post on May 31st in regards to the governments motion for a protective order in the Fairholme lawsuit- “I have many thoughts on what I have read but first and foremost I must remind the government that if they had not chosen to commit securities fraud they would not have to produce anything at all. They have entrapped themselves in their own web of lies and now are begging the Judge to wave a wand and magically release them. I can not wait to see Fairholmes response to their many pathetic arguments. Again and again they grossly contradict themselves. One of the most alarming arguments is that somehow by producing factual documents investors may be spooked into not buying Fannis and Freddies bonds. Think about this for a moment, imagine if the CEO of Bank of America or any big financial institution was caught saying something like this? Basically, they are admitting that they have withheld information and have been misleading investors into buying their bonds? I have honestly to wonder if mel Watt is trying to sabotage the governments case completely, his arguments are that bizarre.”
The government is now descending into Bernie Madoff territory here. It is almost incomprehensible that they are pushing it to this point. Make no mistake that my confidence in our victory has grown increasingly as this progresses. My point, last night, was simply to point out what I consider to be investment 101 principles. I said early on that this is a very volatile, unprecedented situation. I am sure that 90 percent of you understand this, but my post was intended for the ten percent who may think that you can stand to make returns of three to seven hundred percent with no risk at all. Keep the Faith!