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philipmax

philipmax
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  • Carney: Fannie and Freddie investors should surrender [View news story]
    Here's another irritant to shareholders. Litigators, take notice!
    I blogged this info at the time Freddie issue earnings report.

    Treasury confiscates net income of the company(OTCQB:FMCC) as a "dividend", thereby, depriving the company of deducting this "tax" from its reported income and thus forcing Freddie to pay INCOME TAX on the Gross Net Income to the tune of an additional $700,000 Million. Total payoff to this blackmail $2.6 Billion, this quarter alone.

    This doesn't make sense, as banks and other institutions who had to pay "restitution" were able to effectively reduce the sting of such payment by deducting the fines from their reported income.

    If 10% of $2.6 Billion is Chump change, $260Mil, than call me Mr. Chump!

    There is a major crime being perpetrated here by the Treasury. This is a national tragedy unfolding before our very eyes.
    Aug 11 06:43 PM | 2 Likes Like |Link to Comment
  • Freddie Mac earns $1.9B; sends it to Treasury [View news story]
    In The Tube, Thanks.
    Correction on "total payout this quarter $2.6 Billion", not Trillion (yet).
    Aug 7 02:31 PM | Likes Like |Link to Comment
  • Freddie Mac earns $1.9B; sends it to Treasury [View news story]
    Here's another irritant to shareholders. Litigators, take notice!

    Treasury confiscates net income of the company as a "dividend", thereby, depriving the company of deducting this "tax" from its reported income and forcing Freddie to pay INCOME TAX on the Gross Net Income of an additional $700,000 Million. Total payoff to this blackmail $2.6 Trillion this quarter alone.

    This doesn't make sense, as banks and other institutions who had to pay "restitution" were able to effectively reduce the sting of such payment by deducting the fines from their reported income.

    There is a major crime being perpetrated here by the Treasury. This is a national tragedy unfolding before our very eyes.

    The very foundation of our capital system is being undermined!!!
    Aug 7 12:07 PM | Likes Like |Link to Comment
  • Fannie Mae Has Adequate Capital To Be Released From Conservatorship [View article]
    POORDUDE you are right on!!!!!
    Jun 15 12:37 AM | Likes Like |Link to Comment
  • Watt comfortable with profit sweep from GSEs [View news story]
    Funny man that Watt. He loses no sleep, while shareholders can't sleep.
    This ripoff is a disgrace to all that America stands for. Are we a capitalist based economy or socialist/fascist one? I don't remember voting for the latter.
    In any case, there are very few serious obstacles before congress can implement nationalizing F&F.
    The first of course is - what institution wants to insure mortgages going 30 years forward with an uncontrolled Treasury printing fiat money by the trillions?
    More importantly, while F&F have some $11 Trillion in mtge assets, they also carry a similar liability on their respective balance sheets. Does congress want to add this liability to our national debt? Can a hedge fund handle this load of debt? Who are they kidding? F&F are doing an outstanding job greasing the financial wheels that operate our capitalistic society. Tamper with this model and risk sinking our economy into the abyss of the Greatest Depression of all time.
    May 17 09:24 PM | 1 Like Like |Link to Comment
  • U-turn on GSE mortgage policy [View news story]
    Here we go again!
    May 14 09:23 AM | 3 Likes Like |Link to Comment
  • Buffett: No role for Berkshire in Frannie [View news story]
    I am disappointed by W. Buffett's remarks, as I am quite aware that he is an unofficial spokesman for Uncle Sam. He is intimately connected to every aspect of government activity. It sounds and feels like there is no room for the shareholders in the New World Order. Whether through the executive, legislature, or the courts, the deck is stacked.
    Apr 24 08:30 AM | 2 Likes Like |Link to Comment
  • Brown-Forman: Intoxicating Business, Bloated Valuation [View article]
    Good article over-all. I have noticed that BF.b has a '"low" dividend payout whenever I search the Yahoo finance board. This is baffling to me. BF.b has been paying extra bonus dividends that don't get recorded in the "yield" columns. In 2012 BF.b paid an enormous year-end payment that brought the yield to nearly 6%. Several years ago it paid a bonus from the sale of Hartman Luggage, same from the disposition of Lenox China.
    This company is the epitome of what a responsible, shareholder friendly, conservatively managed company should be. I give all the credit to the Brown family for its outstanding good management. KUDOS!!!
    If you don't own shares in BF.b, buy some at any price. You will not regret your purchase.
    Apr 23 09:36 PM | Likes Like |Link to Comment
  • Senate Staffers 'Do The Hustle' With Fannie And Freddie Shareholders [View article]
    "Existing shareholders of these are just trying to monetize the absurd capital the government is allowing these institutions to play with at the risk to the government and the taxpayer who finances the government."

    You may be right. But, the shareholders own these entities now. The Gov't took advantage of the capital markets in the early 1970's and shoved Fanny into private hands to avoid including Fanny's huge debt load as part of the National Debt. A cute "bookkeeping trick" , yes, but it worked. Fanny and Freddie are now OWNED by their shareholders who took on this debt with the accompanying income stream. So now, as you assert, there is a $5T (some say $9T) on the books of these entities that the Crapo group want to revert to the National Debt. I don't think Congress and Wall Street have a stomach for this. And again, as you assert, there will be a humongous housing deflation should access to F&F's liquidity seize up. The solution is to let the shareholders own these companies. Oh! By the way, the shareholders own these companies and they are worth $trillions.

    Apr 11 03:02 PM | 4 Likes Like |Link to Comment
  • Massive Internet security flaw discovered [View news story]
    If a couple of people start a Class Action suit, this nonsense will stop ASAP.
    Apr 9 09:27 AM | Likes Like |Link to Comment
  • Fannie And Freddie Investors Unite In Washington DC [View article]
    Nationalizing companies is in the province of Fascist and Communist governments. I hope we are not heading in that direction.

    It is downright idiotic to wind down these magnificent companies. Fanny was established, in 1939,to restart a sagging housing economy after the Great Depression. It has worked miracles for 75 years. No other nation has this mechanism in place, nor will they catch up, until some "genius" copies our model. As part of the Treasury, Fanny was seen as a drag on our National debt. While issuing notes to fund the purchase of mortgages creates money, the back-side of the equation is to add debt to the balance sheet. In the early 1970's, the US National Debt was rising out of control. President Nixon and his Treasury decided to spin Fanny out of the Treasury and into private hands. This eliminated about $90 Billion from our Debt, ( a big number then) and the run on the Dollar abated. Nevertheless, the bargain was struck and Treasury no longer owned Fanny (Freddy was created later to avoid the appearance of a monopoly).

    F&F are unique in that they can create money at nearly the same cost as the Federal Reserve. This is the jewel that was taken over in September of 2008. If, today, the government were again to take them over, the National Debt would immediately rise by another $9 Trillion. When we consider that in September 2008, the Treasury added $8 Trillion to our Debt, in a matter of hours, it raised our National debt from $6.5 Trillion to $14,5 Trillion. If Treasury were to take F&F over, our National debt would instantly rise to $23 Trillion. This option is not on the table, and explains why the Government took "only" 79.9% of F&F, to preclude the consolidation of debt with our National debt.

    Should government attempt to wind down these behemoths, there will be no viable substitute for several years... if ever. Moreover, it would cause an ENORMOUS DEFLATION that will inflict a heavy price on an already anemic economy. The money supply will dry up as mortgages are extinguished. It would take ten to fifteen years to wind down these institutions. The process could very well lead to the the Greatest Depression. No one in his right mind should even contemplate this folly.
    Apr 9 03:32 AM | 11 Likes Like |Link to Comment
  • Stock of GSEs is a zero says Lockhart [View news story]
    Agreed! Lockhart is lucky he is not under indictment for malfeasance and robbery of public funds. What was his salary when head of FHFA? Where was he? Why did he wait five years to warn the public? And as you point out, he was the lead cheer leader to mislead thi country in this predicament.
    Apr 4 10:39 AM | 1 Like Like |Link to Comment
  • The Good, The Bad, And The Ugly Of Mortgage Reform [View article]
    There are historical precedents to the Government takeover of private companies in America. All were profitable when taken over.
    In WWI, the US government took over 80% of the railroads in this country because the various competing railroads had an assortment of non-compatible carriages that hampered the movement of war material across the Nation. The railroads were promptly returned to the original owners after the war and after the US had invested many millions in infrastructure to standardize the industry.

    Also, in WWI, the US government took over AT&T as a strategic asset and also returned it, with improvements, to the old shareholders.

    In WWII, General Aniline and Film (GAF) and Bayer Aspirin were confiscated by the US as German booty only to be returned in the 1960's.

    So, there is ample precedent for returning property to its original owners.
    Mar 28 01:14 PM | 9 Likes Like |Link to Comment
  • The Good, The Bad, And The Ugly Of Mortgage Reform [View article]
    It works out that the reformers are contemplating the new entity, to be a... Fanny Mae look-alike. The only news is, that Congress wants to screw current owners. Why can't the "problem" be solved by letting Government quietly walk away from this duly formed private entity. 75 years of success is nothing to snear at.

    Conservatorship is not bankruptcy, its not even a re-organization. It is, by definition, a method to conserve the entity in its present state, to the best of the conservators ability. Well...its done its job, and now it's time for the conservator (Treasury) to back away and release the entities to the rightful owners.
    Mar 28 12:57 PM | 8 Likes Like |Link to Comment
  • Frannie wind-down could spare preferreds; faces hurdles in any case [View news story]
    The whole issue boils down to property rights under the Constitution.

    Regardless of what Treasury did in 2008, the question is, can the government confiscate private property without just compensation?

    Since these companies were never legally declared insolvent, there is no mechanism for any entity, private or public,to take it away from its owners.. unless, by theft.
    Mar 13 02:06 PM | 5 Likes Like |Link to Comment
COMMENTS STATS
250 Comments
294 Likes