Fannie Mae-No Politics (FNMA)

[big-yank]

Myths of the GSEs being dispelled, one by one. Viewing the reality of true facts may be uncomfortable... caution noted.

1. Both GSEs rely on government guarantees. FACT.

2. Both GSEs get huge benefits from government including tax benefits and Fed window privileges. FACT,

3. Both GSEs needed a bailout after years of The Wild West risky behavior, FACT.

4. Both GSEs demonstrated a management culture that needed serious repair. FACT.

5. Both GSEs contributed to the economic crisis. FACT.

6. Both GSEs shared a bailout approaching $187 billion that was taxpayer funded. That sets the bar for future costs. FACT.

7. Both GSEs are now showing signs of declining profit growth. Freddie just reported a Q3 loss. FACT.

8. Both GSEs had consenting Boards during the imposition of conservatorship. FACT.

9. Both GSEs ceded total control to FHFA. FACT.

10. Both GSEs have weakened future profit potential, per Mayopolous' comments in last C/C. FACT.

FACTS ARE FACTS.

JMHO.