Fannie Mae, Freddie Mac: Fairholme, WSJ, Ackman

Value Walk, By Tim Howard

I apologize for this late entry of what has become my regular Sunday commentary piece. The Wall Street Journals latest attempt to blindly support the U.S. governments Soviet Style profit grab does nothing more than expose their gross lack of knowledge of anything to do with Fannie Mae and Freddie Mac. In his article John Carney makes the bizarre case that even if the shareholders win in court that the 10 percent dividend and the potential for a commitment fee will effectively drain all profits to the U.S. government. Just as the government has no defense, but to lie about their actions Their mouthpieces are left to do the same. Johns argument neglects to take into account that when the 2012 profit sweep is declared illegal the amount owed by Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) to the U.S. treasury will have shrunk considerably. Depending on when the verdict is reached it may even be zero owed. The bizarre part is that John Carney simply repeats the same lies that were in a Barrons article that we exposed in a post on July 27th. That piece was pulled after our readers, and I confronted them on their lies. Both Barrons and the WSJ are owned by Rupert Murdoch and have been proven to be effective Soviet-style propaganda publications lending blind support to the U.S. government in their attempts to nationalize Fannie Mae and Freddie Mac.

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