nkp007

At our table, we were discussing how some of the analysis on here (including the $bac / $aig warrants threads) easily beats out any other analysis out there (especially from the trillion dollar investment banks!). As long as you're willing to put in the time to do the reading, it is unbelievable what you will learn here.

I like to think it's all about incentives and that with a growing pie, all sides can win. Even if the government "loses" and the entities continue to exist, guess who owns 79.99% of the common of an incredibly valuable enterprise?

I went through the whole list and picked the cheapest ones. Illiquidity isn't a concern for me. The most liquid traded at a 20% premium when I bought the prefs.

I hope you're right. I would love to buy more at a much cheaper price even though I already bought a significant position. Who knows if it'll get cheaper.

You want us to figure it out. Why else would you have posted this?!

Which book did you buy?

I love Twitter and I love listening to what a lot of you have to say on Twitter. It's this century's version of water cooler talk, except that I can choose any water cooler in the world. And I choose the one where all the smart investors are hanging out at. ****I will not be buying Twitter stock. I bet it will be very highly priced.

The risk is they do nothing and wind it down (status quo results in wind down). Political gridlock is a common event...

Mr. Market is there to serve you, not to guide you. Welcome onboard! Nice comments.

Great article in the FT about F+F. http://www.ft.com/intl/cms/s/2/b6f87b18-0f14-11e3-8e58-00144feabdc0.html#axzz2dvYgLRDA

Wow! Look at all the reviews he wrote for himself.

I especially like when Buffett and Immelt go after each other.

I'd love to read through some cases. How do I do that?

I'm ok with it. Small price to pay.

http://online.wsj.com/article/SB10001424127887324823804579015100418242862.html#articleTabs%3Darticle Fannie Mae's New Fans: And an interesting comment on the WSJ online comment board for the article by "Fred Fraenkel" Fred Fraenkel Wrote: Most likely this Fred Fraenkel: http://en.wikipedia.org/wiki/Fred_Fraenkel

BB normally uses some of the best attorneys on the planet. I bet he's getting some good advice.

Are you referring to the fact that the loss could be unlimited? That upside is limited to 100% through traditional shorting. If it goes to 0, you double your money. Unless you use options / CDS. But those are time-constrained and may be priced at a premium if what's obvious to you is obvious to other people.

Also traditional shorting is not asymmetric. Upside is limited.

Love this guy and their GGP investment. GGP in bankruptcy under a dollar will haunt me forever. GGP was generating enough cash to keep current on loans, but it just couldn't roll them over. The banks' were incentivized to extend the loans rather than try to liquidate all the malls and occupancy was still around ~90%. Company was generating tons of cash, just not enough to pay off all its loans. Not a big deal usually...unless it's early 2009. I had just started learning about investing in 2008, so I still had no clue what was going on, but this was a punchcard opportunity.

Miami, FL

Check out the attached snapshot of repayments. If Freddie reverses the writedown of tax assets, things will get very interesting very quickly.

Finally got my hands on the paperback via Amazon for around $12 (used). There were a few options yesterday, but prices skyrocketed today. I'm sure more will be available again. I can't read on the Kindle.

Thanks for posting. That letter shows how many of the incentives align to potentially pay at least part of the private preferreds. Not saying it will happen, but I think the probabilities are favorable.

I think what we have here is a case of commonsense perception vs. the technical rule of law. Nearly all of America will agree with constructive, no doubt.