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Re: chessmaster315 post# 320186

Friday, 11/06/2015 9:44:57 PM

Friday, November 06, 2015 9:44:57 PM

Post# of 795952
I could not have prosed it better my self...

Today Fannie Mae is a cash-generating machine that sends billions of dollars in quarterly dividends to the Treasury. These business-generated cash flows provide the Treasury with monies to fund Congressional appropriations and delay the harsh reality of asking Congress for an increase in the legal debt limit which is a controversy in itself. Because of the terms of the takeover, Treasury can increase its dividend payments by simply making a managerial decision to increase their investment in Fannie Mae and thus increase its cash dividend payments.