Rejoice, both Fannie and Freddie are going to make Fairholme’s Berkowitz whole again, two monster positions for the wretched and horrible retailer leading Sears into the ground.
Incoming Mnuchin promises to release both Fannie and Freddie from Obama’s torture dungeons, permitting them to be great again.
Steven Mnuchin, president-elect Donald Trump’s nominee to be U.S. Treasury Secretary, said Fannie Mae and Freddie Mac should leave government control and that the incoming administration “will get it done reasonably fast.”
The fight over the future of the mortgage companies has been raging since they were bailed out in 2008 for an eventual cost of $187.5 billion. There’s been competing legislation proposed in Congress and battles with shareholders over the U.S. Treasury taking most of the companies’ profits. Since the takeover, the companies have sent the Treasury more than $250 billion.
“We will make sure that when they are restructured, they are absolutely safe and don’t get taken over again. But we’ve got to get them out of government control,” Mnuchin said.
Both Fannie and Freddie are ecstatic to the upside.
Berkowitz owns upwards of 12m shares of Fannie.
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So we’re back to 2007? A government loan agency going up ~45% in a day?
Easiest money made is following Paulson and Icahn’s holdings. Corruption makes money. Trump’s gonna hook these 2 thieves up bigly. And I’m along for the coat tail ride. Long FNMA .
This is the biggest political/market earthquake since the 1980’s bull market.
Past eight years was all about riding the waves of various indexes.
This Trump bull market is all about individual companies and much smaller sectors.
There will be ten-baggers with individual picks, not 3x ETF indexes