BREAKING NEWS – Fannie Mae and Freddie Mac are “voluntarily” delisting themselves from the New York Stock Exchange… the public explanation is that this action is consistent with preserving the value of the companies since they are in conservatorship (essentially, bankruptcy). But the reality is that both stocks are so worthless – hovering at or below the $1 per share mark – that forced delisting is likely to happen soon anyway.
More evidence of astounding government mismanagement.
Thanks for reading the Bryan Ellis Real Estate Letter. Your comments and questions are welcomed.
I don’t see this as a bad thing. Now that they are soon to be private entities they can concentrate on doing things the right way, without having to deal with the demands stockholders can put on them to produce profits by any means necessary, which is what got us into this mess in the first place. It’s good for all of us in the long run. They will now have to insure all guidelines are met on every loan they purchase before they actually do so. Something that they should have never gotten away from in the first place. Stockholders deserve nothing more anyway. Hell, they stole enough already.
They should dissolve both companies completely to save taxpayer money.
Sludin, spoken as a true Socialist!
Stockholders, in general, want a company with good solid financials. A sound management. A product that is beneficial to society. A track record of achievement. A reasonable expectation that the company will be able to grow.
Freddie and Fannie were unable to provide any of these merits. Under the control of Barnie and company (no, I don’t mean the purple dragon, but a fair comparison) both provided for guidelines to give loans to an audience that would certainly keep on voting for them, and provide reasonable cover should the hoax be exposed.
The game is not over, though,
Expect more cover and greater forced tax payer bailouts in the near future. The Dems need votes and they know who to target in order to get them.
BTW, thanks to all those that voted in Obama and company (Gotta love them that dont think for themselves). At least we know that after 18 months of their expert guidance that the previous administration can still be blamed for everything. (the Knick would love to have that freedom of blame. But, of course, we hold professionals to a higher expectation).
Even though I know this will be “moderated”, (read that “blacklisted”),
I just couldn’t resist responding to David0617. Let’s blame the “LIBERALS” for all if this. Never mind that this whole mess started under the Republican administration headed by George the Second and and his sidekick Dick. We should also conveniently “forget” that the first bailout was initiated by Dick and George.
Now with that said, I do think that both entities should be delisted. Keeping them listed on the New York Stock Exchange is really a sham.
Jim Myers
Allowing FNMA & FHLMC to be listed on any stock exchange is no different than allowing HUD or the US Post Office to be listed. The fact that anybody still owned their stock is beyond me. Why would anyone want to own part of any company that loses money year after year?
I find it interesting that conversations such as these always attract a few people that just want to argue where the fault lies – Democrats or Republicans. The fact is neither side knows how to run a profitable entity. The Post Office loses billions of dollars even with a monopoly on your mailbox… and who was in office never changed that fact.
One more comment… GM will be offering an IPO. Fannie and Freddie will probably be merged at some point and once real estate values in this country begin to stabilize, we’ll see it/them relisted too.
Geez, Jim, I didn’t know that you compared socialists to liberals. I was under the impression that they were quite different. One biggie, libs haven’t so far exterminated millions of innocents.
Also, even after re-reading my post I could not locate where I placed blame on an administration or where I propped up one over the other. Barney Frank, as you may know, headed up the gov’t organization overseeing Fanny and Freddie (hence the reference). Last, and this may help you, Jim, the educated concensus is that the gov’t delisted them more to get around the minimum shareholder’s equity requirement. Share price could have been manipulated.
By the tone of your remarks can I assume that you were one of those “Bush Haters” that were so dominant on the left? Happy investing!@
PS. Its a shame that the O man convinced BP to halt its dividend payments. A lot of middleclass folk depend upon dividends to suppliment their income or help them in retirement. Shows no class!
Hey Jim get your facts straight…all this started before George W. How about your beloved President Clinton? This is why our country can be RULED by strong arm tactics and social agenda….people wake up and read history. When we really know why we are in this mess real solutions will surface. It’s time to stop pointing fingers and it’s time to slow down fundamental transformation.
We need to come together as a Nation to solve many of the challenges in front of us. We will not agree on everything and that is what makes our country great. When WE THE PEOPLE ban together and up hold the principles and rights the Constitution lays out for us we have a road map to recovery. This is the land of opportunity…not the land of handouts or pandering. Invest in yourself…read, learn history and become part of the solution.
Let your voice be heard…get out and vote!