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Andy Lowy
Rule Number:
Federal Register Citation:
83 FR 33312
12 CFR Parts 1206, 1240, and 1750


This question is very difficult to answer, not because the question itself is difficult, it’s because I’m not exactly sure who I am talking to.

I am invested in Fannie Mae and Freddie mac, and have been for a long time. But I’m also unfortunately currently invested in the FHFA failing. 

I had long paper typed up, but I decided to delete almost all of it, and just post some of the key points.  I will assume that whomever is reading is already aware of the fraudulent conservatorship history. I will assume I’m talking to 1 of 2 types of people.

1) Someone who is going to lie to me and the public, bend and hide the facts, fight me in court and give me one sided example of why we should delay building capitol, and still give the market to the banks who failed the economy.

2) Someone who is actually trying to improve the situation, by working to build capitol and stability, working to give non-treasury shareholders back their voice and voting power, and removing the SPSA and net worth sweep. 
Until the goal of the FHFA is a fair balanced democratic system with pitting the banks vs the shareholders, vs the government vs the FHFA on level playing fields each defending there their own interests, any reform efforts will end up being misguided and wrong, and unstable. 

For many reasons, I hope this is read by people who are in category 2.

Every proposal put out by the Edward DeMarco, and David Stevens, Bob Corker and a few of their friends all have the same underlying concept. “I have the best most efficient future system, if I can trick you into thinking Fannie Mae and Freddie Mac are bad.” I admit, the John Carney/David Stevens/Edward Demarco snake oil salesmen team was very effective, I spent quite a bit of time reviewing the proposals over the years, but in the end, they all have significant flaws. They have lost their chance to kill Fannie Mae and Freddie Mac in the “fog of war” now they are being more subtitle, and just looking for sneaky ways to cripple them. I have to give them credit, they have put up a good fight and sales pitch, it’s just unfortunate that they have lots of inferior products to sell. 

Edward DeMarco, Only he could take a company, use it to save the economy, while trying to kill it while preaching how it’s a bad business model. Why would he sink his own lifeboat? Most of the issues we need to remedy today, are self-inflicted wounds caused while he was in charge.  He’s either the worst business man alive, or completely corrupt. 

Tim Howard on the other hand seems to be the most level-headed individual I have ever had the pleasure of following his blog. Its obvious why he was forced out of his position at Fannie Mae, and the also why he was kept out of the courtroom by the Defendants.  This man knows what he’s talking about, and his intention is to provide a stable, profitable, low cost system for consumers. Unfortunately, that does not bode well with snake oil salesmen, and they are willing to fight dirty. 

The economic collapse was very real to me. I was a young adult, who had recently graduated collage, married, purchased my first house, and had a child on the way. I had been working at my job for only a few short years. I remember watching the news every day, watching the panic, watching many of my fellow friends, coworkers, parents, and neighbors, losing their jobs, houses, and retirements. I remember going into work every day wondering if I was going to still have a job that day. Watching the markets freeze up, and wondering if the dollar and the whole economy was going to collapse. It was easily the worst time of my life. I still remember it very clearly. 

My goal here is to never have to experience another crash like that as long as I, and my kids live. The pre-conservatorship Fannie Mae and Freddie Mac model is good. It took 80 years to develop, and It works well. Unfortunately, it only took a few bad actors with too much power to cause a lot of damage. I hope the administration is working to correct those mistakes, and are asking for help from the right people.   

Build capitol, End the Warrants, end the SPSA and End the Conservatorship. And Don’t let Demarco, Stevens or any of their friends near it. They caused enough damage already.

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