Once again it’s not just the U.S. government spreading lies and distorting the facts about Fannie and Freddie, today we had Bloomberg news join in. Today they stated “Bruce Berkowitz, manager of the $8.65 billion Fairholme Fund (FAIRX), further reduced his stake in the common stock of Fannie Mae and Freddie Mac (FNMA) while maintaining his bet on preferred shares of the U.S.-owned mortgage finance companies.
The Fairholme Fund held 13.7 million Fannie Mae common shares as of May 31, down from 20.5 million shares on Feb. 28, according to documents filed today with the U.S. Securities and Exchange Commission. Fairholme’s stake in Freddie Mac declined to 11.5 million shares from 17.2 million shares during the same period.”
This was actually old news; this was reported months ago. It was also reported that the 6.8 million shares Bruce sold went to Carl Icahn.Which actually made it very good news. Not only did they leave that critical fact out but they also neglected to share this comment that Bruce Berkowitz made two days ago regarding his Fannie and Freddie investments. “Fannie Mae ( FNMA ) and Freddie Mac ( FMCC ) preferred stocks and common shares constitute approximately 15% of the Fund’s portfolio. We believe that the two companies may be the most important financial institutions in the United States – perhaps the world – and directly support housing affordability and accessibility, including the uniquely American 30-year fixed-rate mortgage. They are a major reason our country did not enter a second Great Depression, and are proving to be the most successful taxpayer investments of the Great Recession.”
Why would a financial publication like Bloomberg grossly misreport this? Because As I have said before the conservative financial media has been the greatest ally in the U.S. governments attempt to defraud the private investors of Fannie and Freddie They have continually provided a mouthpiece for the government to spread their lies and misinformation. In many cases, they even act on their own like we saw today. Just as we have seen politicians go to extreme lengths to drive the price of Fannie and Freddies stock price down here, we see Bloomberg doing the same. They feel that the lower they keep the value, the less attention that will be focused on their scheme. Just as we have with Rupert Murdochs Wall Street Journal and Barrons, we will not allow them to get away with this. They have all become the Baghdad Bobs of Fannie and Freddie news. Its shocking that just because they disagree with the business model of Fannie and Freddie they would actually become co-conspirators in The U.S. governments Soviet style profit grab.
Keep the Faith!
(I want to thank our reader Hawk_eye for quickly pointing this out, now we know how they got their name! )
Update: Bloomberg has corrected the story by adding this “The sales were previously disclosed in a June court filing, which showed that the Fairholme Fund on March 11 sold 6.8 million Fannie Mae shares and 5.7 million Freddie Mac shares to partnerships run by Carl Icahn.”