Judge Sweeney’s decision not to allow Timothy J Howard access to “protected” information in the “Fairholme lawsuit” is trivial. Timothy J Howard has already provided and will continue to provide Fairholme vital information in unraveling the governments fraud. Also remember, Howard was not even employed by Fannie Mae during the time periods being scrutinized in discovery. Todays decision will have no impact on the overall case. Because he will not be allowed to view “protected information” does not mean, he will not be able to provide Fairholme with vital information and help coordinate logical strategies. Many great comments were made concerning this on yesterday’s post, and I will not waste anymore time on this. I hope yesterdays order does not distract from other far more important issues.
It was ironic that Judge Sweeney referred to the governments outrageous “financial armageddon” related to Tim Howard. Very interesting when you consider the fact that we just witnessed Judge Lamberth suspend the rule of law in our country by granting the governments motion to dismiss in the “Perry Injunction”. The rule of law in our country was the primary reason that money flows into Americas capital markets from around the world. Lamberth set a dangerous precedent and pointed America down a dangerous road don’t think for a minute the world did not take notice. The markets began to plunge the day after the ruling. I am by no means implying at this point that the Lamberth decision is the only cause of the market collapse but to think it is not playing a role would be beyond naive. Who would want their money in a country where the rule of law can be indiscriminately abandoned if the government feels they are entitled to your company, your profits, or both? The true financial armageddon will be due to Americas decision to follow the Soviet-Union/Russia down the dangerous nationalization road by selectively suspending the rule of law to accomplish their lawless goals. I am hopeful that America will ultimately correct Lamberth’s flawed decision, and reverse us from the Soviet-style course he has set us on. But as I have said from the beginning, if this is allowed to stand Fannie and Freddie will be the least of our concerns.
I am drafting a cautionary note to be sent to governments around the world as well as domestic investors concerning the dangerous precedent set by Judge Lamberth. I will stress that it is in everyone’s best interest to pressure the U.S. government to quickly reverse course on this. Until they do so, I would limit exposure to U.S. equities especially those in the U.S. financial sector. Keep the Faith

9:15:14 Howard denial.