Matt Frankel

Once SpaceX's financials are released, when we get a little closer to the IPO, we'll have a better idea of just how ambitious this valuation is.

But right now, we honestly don't know.

You know, Ackman, he's very prolific on social media and has a history of calling things out when he thinks that something's going to be a net positive that isn't.

A big example is, remember, the Omicron wave of COVID that initially tanked the market.

He came on and said, this is going to be a net positive for a less contagious version that is highly infected, would be a net positive.

And he was right.

The Omicron wave actually turned out to be a net positive for ending the pandemic.

So, people tend to take them seriously.

But on the Fannie and Freddie issue, it's not really a real estate play, and I'm going to refrain from turning this into a financial crisis history lesson.

So, Fannie and Freddie, they're the two government-sponsored enterprises, or GSEs for short.

They essentially keep the mortgage market functioning smoothly.

They don't actually make loans, but when you apply for a mortgage, it has to meet Fannie or Freddie's standards.

They'll back the mortgage, it'll help the lender give you a better interest rate, and provide fluidity to the mortgage market.

After getting in trouble during the mortgage meltdown of 2008, when there were a ton of bad mortgages on the books,

We could spend an entire episode on that.

Both of these were placed into government conservatorship.

The U.S.

Treasury then owned the majority of both.

I think that was 80% technically they owned, but they swept 100% of the profits of both agencies once they became profitable again in 2012, less a little capital buffer to let them operate.

Now, President Trump, even in his first term, has been discussing reprivatizing both agencies, removing the conservatorship and letting them start to distribute profits to shareholders again.