Fannie Mae-No Politics (FNMA)

[Mathan22]

It depends on how you look at this statement. What assumptions are you making? I'll make an assumption as well and show you what I mean.

"If we did not act immediately, Fannie and Freddie would, I feared, take down the financial system, and the global economy, with them."

My assumption is that after the crisis, Fannie and Freddie would no longer guarantee any loans from Banks that did not have the Captial to buy them back if they did not perform. By not purchasing them any longer, they would then "take down the financial system."

So...Paulson took them over. They could then bail out all the banks, sell non performing loans to the GSEs while in conservatorship, falsify their accounting while in conservatorship, and hide 11,000 documents in conservatorship to save tax payers and the TBTF banks all at the expense of FnF shareholders.

He did not say that FnF would take down the financial system because they were not solvent or that they didn't have enough capital to weather the storm. Is that an ASSUMPTION you are making? Why don't you post that in caps. As you should know, only a very small percentage of FnF loans were in danger of not performing. In fact, just weeks before the conservatorship, the FHFA deemed them safe and solvent.