After being muzzled by former FHFA chief Ed Demarco as he waged an ideological war to wind down systematically and eventually eliminate Fannie and Freddie their CEOS have been unleashed by Mel Watt. Ed Demarco’s treatment of the GSEs stood in sharp contrast to the terms of the conservatorship. Mel Watt is not actually doing anything revolutionary he is simply not breaking the law. Today as they announced their earnings they let the world know in no uncertain terms that critical reforms are in place to provide for a responsible reformed release. This marked yet another huge step in the changing narrative. The pace at which the changes have been occurring has been escalating rapidly.
In a talk at the Invest for Kids Conference in Chicago, Bill Ackman confirmed much of what I have been sharing here. I was thrilled to hear that he used our ultra simplified explanation of the Third Amendment, which is The government made a deal with the government to sweep all of the profits to the government. This explanation sums up the reality of everything that is wrong with the lawless theft involved. Mark Mellon, who was tweeting live from the event, tweeted: “Ackman: If judges allow the government to take private property it will blow up the entire country.” You will remember I shared similar concerns though not quite as dramatic as Bill. Bill went on to point out that Judge Lamberth was a hostile judge and that the governments illegal seizure of Fannie and Freddie will not stand ultimately. He also reaffirmed that once the issues are resolved we could see share prices as high as $40.00-$50.00 per share. Bill has not blinked once as the drama has continued to unfold. This is because he has done an extraordinary amount of research and knows without a doubt that Fannie and Freddie will never be eliminated. He could careless about the day to day price fluctuations he awaits the final prize. This blog has no interest whatsoever in the day to day price movements of the stock. We like Bill feel it is meaningless to even watch at this point.
I am posting a link to an article from Rolling Stone by Matt Taibbi entitled “Largest taking of a private asset in history”. It provides an inside look at the fraud that took place at JP Morgan as they systematically fraudulently dumped toxic mortgages onto Fannie and Freddie.
I want to reiterate the warning that we issued today to those who choose to feed the river of lies about Fannie Mae and Freddie Mac. We will no longer simply respond to your lies but just as we did with Stephen Blumenthal a few days ago we will expose your lies for what they are and the true motives for your lies. We will use the truth to destroy your reputation just as you use your lies to destroy ours. We are currently working on a piece concerning Ed Demarco to release when he gives his upcoming speech which is surely to be nothing but lies.
In closing, I want to update everyone on our Summary of Truth project. It is growing more and more apparent that the claim that Fannie and Freddie were forced to buy 40 billion dollars worth of toxic MBS off the banks after the 2008 bailout is false. We can discuss this further as well as other truths we are getting ready to add. I also understand that at times the “Truth” may not be what you hoped it would, but we are committed to sharing the whole truth about everything related to Fannie and Freddie. Ultimately regardless of our differences we have done an unbelievable job to help change the false narrative and get the truth into play.The tide has shifted dramatically. Keep the Faith!