Luke 532

I'm half-listening to the hearing. Did I hear correctly that Watt just said a moment ago in his exchange with Heitkamp that "we'd like the utility model"?

Mel Watt tells Congress "told you so" on #Fannie/#Freddie Q1 draw, hints that working with *Mnuchin* is the way to avoid future draws. Adds: "this could well be the last time I appear before this Committee as Director of FHFA" "Too many guarantors will create a race to the bottom"- Mel Watt Anybody else find this part interesting? hints that working with Mnuchin is the way to avoid future draws.

https://thenationalrealestatepost.com/fannie-mae-tries-to-get-out-of-conservatorship/

I see what you did there ;D Inside the last article: http://gselinks.com/pdf/Govt_Perfidy_Angel.pdf Yeah, I know. That's why I laughed. Somebody filing a suit that can't even get the name of the company correct is surely to do well :)

I see what you did there ;D

I greatly appreciate your comments on this board... always helpful and insightful. Thanks!

That's beautiful.

That was my initial reaction as well. Light is likely trying to undermine any future actions by the Administration by alerting adversaries to Mnuchin's possible end-goal.

Sounds like Treasury argued there are paths to shareholder recovery. Questioning about limits to FHFA's power is also encouraging. I'm not the only one that heard that, as Peter A. Chapman suggested the same (he listened to it before I did, and I thought it was noteworthy as well). I was planning on adding to my GSE positions this week anyway, and I didn't hear anything in the oral arguments that would change my mind.

Courtesy of Peter A. Chapman... The Saxton case was argued before the Eighth Circuit this morning, and an audio recording of the 40-minute hearing is available at http://media-oa.ca8.uscourts.gov/OAaudio/2018/5/171727.MP3 at no charge.

Courtesy of Peter A. Chapman... Fairholme filed a redacted copy of its amended complaint in the U.S. Court of Federal Claims this evening, and a copy of the redacted 92-page complaint is attached to this e-mail message. 13-465-0404.pdf

Emily, it's probably against the rules of this website to copy a previous post of yours, delete the original, and then re-post it so it shows up as the most recent post. That's happened at least 3 times with the post I've quoted above. Keep in mind that the fundamental concept of value investing is to find something that should be at $X but instead is trading at a discount. I understand your frustration, but security prices staying low for a lot longer (or forever) than one would hope or think is part of the process. I have a question (note I'm not emily's 2nd secret account) I just have a question. At what point does it become problematic that the entire gov't and 100% of the media is lying to the public about this subject and has been for an entire decade while the public is on the hook for it? I would think people here, while I'm sure are feeling beat down, wouldn't be so quick to berate others pointing out the inequities that have persisted for so long. We're supposedly a country where the rule of law is equally applied. Thusfar the justice system has done nothing to convince me of that in my LIFETIME. Not just this case but everywhere I look. When the going gets tough the judges seem to get paid under the table or coerced into rulings that benefit the gov't. So yes it isn't helpful to keep bringing up the same crimes over and over but it's worth remembering that at some point, if we continue down this path, our institutions are going to face votes of no confidence top to bottom. We must reverse course or else. I think it is important to remind everyone of the context here from time to time. This is supposed to be America. I agree that we should be reminded from time to time of the atrocities taking place but it's on a weekly basis, if not more often, from one person. When the central thesis of an investment is that a wrong should be corrected, well, we shouldn't have to be reminded over and over again that there's a wrong that should be corrected. If somebody has forgotten that part of the thesis then they shouldn't be invested in this situation at all.

Emily, it's probably against the rules of this website to copy a previous post of yours, delete the original, and then re-post it so it shows up as the most recent post. That's happened at least 3 times with the post I've quoted above. Keep in mind that the fundamental concept of value investing is to find something that should be at $X but instead is trading at a discount. I understand your frustration, but security prices staying low for a lot longer (or forever) than one would hope or think is part of the process.

The word "all" is dangerous. Writing a book does not make one an expert. The content of their book that has stood the test of time makes one an expert. There are only a handful of books one needs, and the one I've recommended to you in the past is The Intelligent Investor, so I'm guessing that's what you have in mind as the source of my being brainwashed. The Intelligent Investor, although not directly quantifiable, is likely responsible for 95% of why I'm a self-made millionaire. I'll gladly be brainwashed, if that's what you call it. I've mentioned before that you need to guard yourself against emotions (read The Little Book of Behavioral Investing if you haven't already). That's not unique to you, it's something all investors need to do. Posting/griping about the current situation and current stock prices is more of an emotional release that results in wasted energy.

Emily, with all due respect, many (not all) of your posts are simply a complaint about the current situation. That doesn't add value to the board and just bogs it down. With that said, I do appreciate it when you post something that adds value to the board. Thank you.

Seventh Circuit released its opinion affirming the District Court's ruling dismissing the Roberts Plaintiffs' lawsuit (attached) 17-1880-0048.pdf

Was just having fun with you. Look, you have a lot going for you... you're young and you have been following very closely one of the most complicated investments you're likely to encounter in your entire life. There is value in that. Keep plugging away and work at keeping emotions in check and you'll be fine, whether it is with the GSE's or elsewhere.

Dear College Student trying to get by, Thank you for the investment advice. Yours truly, Self-made millionaires on this board (via investing) Just messing with you, Emily. But seriously, I can sense you are letting your inner Captain Kirk steer the ship instead of relying on your inner Spock. It should be the other way around.

Yep. Well, we know what the agenda is for the RNC.

From my model, R^2 coefficient of "% of par vs dividend yield" hit 0.85 last week, pretty high. It's still at 0.77 now, so I have been selling high divs and buying low ones. If it gets back down to the 0.5-0.55 range I'll do the reverse. For now I'm mostly in the low-divs like FNMAL and FMCKM. (btw I can't buy or sell the variables. They would kind of break my model anyway) I don't factor dividends into the prefs I'm buying at all. Not expecting the div rate to have any meaningful, if any at all, impact long-term.

I've been adding in the past week to FMCCL at roughly 18% of par. Roughly $9 on $50 par.

FMCCL at roughly 18% of par looks super attractive here. Yes, I'm talking my book. ;)

https://www.congress.gov/bill/115th-congress/house-bill/4560/all-actions?loclr=cga-bill H.R.4560 - GSE Jumpstart Reauthorization Act of 2017 Latest Action: House - 04/24/2018 Placed on the Union Calendar, Calendar No. 497. (All Actions)

Seems stronger support than some believe... This isn't explicitly confirming a punt to 2019. "Not sure" is uncertainty, not an explicit statement... I appreciate the healthy pessimism but much if it seems to be overstated.

"The timing around housing finance reform is worth considering because Corker, who has been a driver behind efforts to overhaul the GSEs for years, is set to retire at the end of 2018. And without legislative action in the near term, the odds go up that the Trump administration could act unilaterally to make changes to the mortgage market through the Federal Housing Finance Agency."