We have been through quite a lot the last few weeks, and I feel we need to step back and survey our situation. It was good to see the Common stock price bounce back after the Lamberth decision. The plunge was irrational but understandable considering the almost across the board gross misreporting on Lamberth’s decision in the “Perry Injunction”.This was predominantly fueled by a general complete lack of understanding of our complex situation by the media. This article today in Forbes by Nathan Vardi clarifies my points, http://www.forbes.com/sites/nathanvardi/2014/10/14/investors-return-to-fannie-mae-and-freddie-mac/ Nathan points out “Now, they’re back, at least in the common shares. Shares of Fannie Mae rose by 10.2% on Tuesday to $2.49. That means the stock, which plunged by about 40% after Judge Lamberth’s ruling, is now down by only about 7% from where it closed moments before the ruling was issued.” You will remember that soon after Lamberth’s decision I shared this analysis: “Just as I said in January and still today all of our answers can be found here. I would say the three components carry about equal weights. We could lose every legal case yet if congress didn’t pass any reform we will win by default. I want to look briefly at the 33% legal component briefly as that is on everyone minds.We have always considered the perry injunction a long shot; the Fairholme lawsuit was where we had most of our legal hopes. Let’s say 70% Fairholme lawsuit 30% Perry injunction. When I apply this calculation, I find that the Perry Injunction comprised about 10 percent of our overall situation. The appeal was filed yesterday, so the perry injunction is not even over yet. On the other hand, we are looking incredibly well in Fairholme lawsuit.” It is critical to understand the whole picture. Nathan goes on to say “But hedge fund billionaire William Ackman’s Pershing Square hedge fund, which has placed a large bet on the common shares of Fannie Mae and Freddie Mac, has probably weathered this most recent Fannie Mae and Freddie Mac storm better. Ackman’s hedge fund is also suing the federal government over Fannie Mae and Freddie Mac, but in a different court than the lawsuits filed by Berkowitz and Perry that were dismissed.” Nathan is not alone the majority of news stories claimed that Fairholme and Perry lost their cases. Ignoring the reality that the “Fairholme lawsuit” is alive and doing very well in the Court of Claims.
Its unfortunate that the decision was released as I was was preparing to depart to DC. I wish I were more available during those critical days to help inform a more accurate picture of what was transpiring, but that was impossible. Having had some time to reflect and analyze more deeply on Judge Lamberth’s decision I must say my first reaction is where I am pretty firmly planted. I do respect the opinions that so many of you shared regarding this and love the fact that we can have such honest, open debates.I admire the ability many of you showed to find the silver lining amongst the dark clouds. I will first say that I do agree that there are bright spots in Judge Lamberth’s ruling as pointed out so eloquently by many of our readers and others. But I have to agree with Richard Epstein that over all his ruling was riddled with grave errors. Richard Epstein article in Forbes points out exactly what I am referring to: http://www.forbes.com/sites/richardepstein/2014/10/10/withdraw-and-correct-the-error-of-thy-ways-the-perry-capital-opinion/ It is very clear that he focused solely on finding any possible reason to dismiss the case. Literally cherry picking a section out of HERA to justify his opinion while ignoring the parts just before and after that contradict his ruling.Essentially he betrayed blind justice and rushed his judgement based on other developments in our cause.He allowed his own hatred for Fannie and Freddie influence his decision.Bold claims I know but in the end my words will be vindicated.
I want to remind our readers, “A house divided against itself can not stand”. We need to band together if we want any hopes of emerging victorious in the is David vs. Goliath struggle. I realize we just went through a tumultuous phase, and it likely will not be our last. The dissension that ripped through our ranks must cease. No one ever said this would be easy, but it is critical that we not allow our differences to rip us apart. I don’t expect everyone to agree with everything I do and say but trust that everything I am doing is to bring about our freedom.
I have not asked for one penny for my work. I will ask though that our readers, please watch this short video. It reflects a struggle that means a tremendous amount to me. The native Americans have paid a far steeper price at the hands of our government than most could ever imagine. Years ago I had the opportunity to do a sweat lodge with the great grandson of Crazy Horses medicine man. It changed my life forever. Keep the Faith!
http://www.lakotakidz.org (Please help if you can)