Berkowitz on Fannie Mae and Freddie Mac

When Bruce Berkowitz talk about investing I always listed and appreciate his insights.  Below is his thesis on Fannie Mae and Freddie Mac, as discussed with David Faber in a CNBC interview.  The Fannie Mae preferred stock should be an incredible investment but of course there is tremendous uncertainty with government involvement.  I see no reason why it should trade closer to par but the government has shown that they will make decisions based on political motivations, although the laws and the constitution are very clear on protection of property rights. At TTCM, we have established a small position on the preferred stock.  Enjoy.