Obit,
in my original assessment... i allocated $30 Billion for INTEREST on the debt borrowed at the usurious 10% interest rate.
Be mindful, that cash is a fungible.
fun·gi·ble
'f?nj?b?l/
adjective
Law
adjective: fungible
(of goods contracted for without an individual specimen being specified) able to replace or be replaced by another identical item; mutually interchangeable.
Therefore, its a net net approach.
Don't get covered up in the weeds.
As to your...
So, in the first quarter ending on March 31, 2010, DeMarco found that both Fannie and Freddie had net worth deficits of $-8.4 billion and $-10.5 billion respectively and requested US Treasury draws for $8.4 and $10.6 billion. These amounts were paid on June 30, 2010 to the GSEs.
Lets be mindful the this theoretical "net worth" deficit is an amalgamation of debits and credits (pluses and minuses) many of which are accounting (accruals) as opposed to cash basis.... (you do know the difference?)
Had the treasury (government) not orchestrated the books to show "deficit" there would have been no need for "additional debt".
This is a circular speak for having a boat that is half sunk with water... and "pumping the river" instead of lifting the transom out of the water and then pumping the boat. Pumping the river is a never win situation. With treasury and its efforts to distort the truth and bend it to its way of thinking excess draws (debt) was extended only to serve the purpose of showing a dire situation when in reality it was never so ominous that sound management directed at different goals would have succeeded. To this we are here today, not because of the efforts of "management" but because they ran out of "losses" to record and got caught. It was a inspite of FHFA and Treasury that these entities are undeniable sucesses and weathered the political storm set upon them.
It is my belief that the situation was never as bad as it was alleged to have been and that much of the decision making to set excess reserves was politically motivated. That was motivated by those wanting to kill fannie and freddie and take the business for themselves or their favored few. The financial crisis was true, and the effects were made worse by the grandstanding.
Much of the injury was self induced to create attention (much like a child would throw a tantrum.
Peace.
