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Whose Freddie Investment Thesis Is Right?

The vast amount of stockholders of Freddie and Fannie Mae are in at a much higher price whether they are institutional or private. Any help from the government will only return a portion of their investment which has helped to run the mortgage industry for all people in the USA. If the government wipes out these shareholders noone will ever invest in a GSE again. The only reasoning is that people don't want the stockholders to benifit which is in fact saying that you want the shorts to benifit who are the speculators, so do we help the speculators or the stockholders? The effect of the increased stock price will enable both GSE to raise capital and calm the market. The problems with mark to market accounting should also be addressed so we can view the longterm profitability of these companies that can return the money borrowed from the government as the spreads increase on future loans.