Message Font: Serif | Sans-Serif
No. of Recommendations: 0
The past is obvious:

As famous money manager Bill Miller, the chief investment officer of Legg Mason Capital Management, wrote in a recent letter to his investors:

“When the government pre-emptively seized [Fannie and Freddie] not because they needed capital and could not get it, but because the government believed they would run out in the future, then shareholders of every other institution that needed or was perceived to need capital did the only rational thing they could do—sell, in case the government decided to pre-emptively wipe them out as well.”

The future is not.

I believe FRE and FNM are going to survive as private corporations, probably in a public-utility format. Their common may or may not have speculative appeal at roughly 80 cents per share. If they do, then the preferred stocks of each enterprise are more appealing.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.