After six years of fighting what often seemed to be a hopeless battle, where every small victory was followed by another crushing defeat I understand the many of you may struggle to believe in our progress. It is hard to shift gears and truly believe that the tide has turned, but it is something we must do if we are to achieve victory.Up until recently it was critical that we remain in an all-out attack mode. We were locked in a David Vs Goliath battle against the most powerful government in the world, and we had very few allies. Just about every article written about us blindly backed the government’s lawless actions, falsely portraying our struggle as one between rich greedy hedge funds and the poor American taxpayers.But over the last six months we have achieved remarkable progress.We now have a host of powerful allies on our side, all pushing for the reformed release of Fannie and Freddie. We are at a point now where we must shift our strategy and rebalance our goals based on the reality on the battlefield. We must recognize, embrace and support our allies while continuing to forge new alliances. Our simple message of the truth has resonated throughout this great debate and is producing incredible results. We will obviously not stop exposing the lies of our opponents but must strike a delicate balance.
I want to ask that folks try and refrain from dramatically overreacting to the news of the day whatever it may be. Bear in mind that when new information comes in we simply assimilate it into the mountain we already have.We have no interest in joining in the theory of the week club that is based largely on whatever happens to be in the news that day.
This week when Mel Watt said, “I don’t know that I perceive it’s my responsibility to start that conversation,” I was shocked to see the reaction this got.First of all this was nothing new, he has said this repeatedly since the Senate Banking hearing. Second of all it is all part of the political gamesmanship that we have cautioned our readers not to fall victim to. By reacting you are only giving them the satisfaction they seek. For the record we want to confirm we were not fooled by Mel’s clever choice of words, Mel knows full well the authority he wields, he has confirmed this many times in the past. Mel has played a huge role in reversing every step Demarco had in place to eliminate the GSEs; he also has brought about many key reforms critical for the release of Fannie and Freddie.He is walking a tightrope as he is forced to navigate the high stakes political landscape that surrounds this issue.We must not let our impatience allow us to turn on our most critical allies.
I think a lot of the seeming contradictions and confusion we see right now will become much clearer as we proceed forward.I wouldn’t want to speculate on various strategies right now other than say that various exits have and will be continued to be evaluated by all of the key players. The timing has and will continue to play out in a highly political fashion.
Senator Shelby’s remarks concerning getting Fannie and Freddie up and running again also confirmed a notable shift. As more and more politicians realize that Fannie and Freddie aren’t going anywhere, we are witnessing a jockeying for position on all sides to try and gain maximum political leverage from the inevitable release. The more rational Republicans, realizing that the release is inevitable are trying to position themselves to try and get something out of the deal. Unfortunately, they remain fixated on eliminating the mandates but this will never happen with the Democrats calling the shots.They can dream all they want but the mandates are off the table, this is a non-starter.They can however find success in ensuring that the reforms that have been and continue to be put in place are adhered to going forward.The fact that the Republicans have recognized the dangers posed by the dangerously low capital levels at the GSEs was a big turning point.We should continue to encourage those who have sounded the alarm and push for more to join them.
We continue to see improvement on the media front, we want to commend Bloomberg news for the great progress they have made in providing a much more complete and accurate picture of the GSE debate. We have been highly critical of them in the past and felt their progress should be noted as well.It is refreshing to see that the government has been rapidly losing the near universal backing from the media they once enjoyed.As the Sweeney trial moves deeper into discovery, I think we will see more of the governments blind backers get on the right side of history.It will be interesting to see who will be the last “conservative” financial media outfit backing the government when this story ignites the public. We will definitely send an award to the unlucky winner.
The New York Times continues to disappoint; obviously Gretchen Morgenson hasn’t got over her hatred of former Fannie CEO James Johnson for destroying her aspiring political career. She proves “hell hath no fury like a woman scorned”.We are curious just how long a left-leaning paper will allow the lies of Pinto/Wallison to grace their GSE articles.It would be like the WSJ turning their editorial page over to Arianna Huffington.
We have added the most recent documents in the Fairholme lawsuit on the above page: https://timhoward717.com/legal-documents/discovery-legal-documents/ We may have a bit of commentary on these later in the week.
Due to the progress recently made on the Republican side we have decided temporarily to shelve our plans to notify Rep. Royces constituents of his obvious credibility problem. Rather we are now pursuing plans to put out a public message right in DC that thanks the employees of Fannie and Freddie for not only returning every penny they received but delivering a 36 billion dollar profit to the American people,making job well done.
I hope everyone enjoyed our last post though humorous it reflected the truth as we know it. We thought everyone could use to lighten up a little. We will be doing just that as we will be spending Feb. 18-28 between Miami and Key West. There may be lapses in our coverage depending on what beach we are on.
Keep the Faith!