Fannie Mae-No Politics (FNMA)

[HaloHat]

It continues to amaze me that people [and I am not saying you Donotunderstand] keep talking about an implied guarantee or that the governments statement that the reason FNMA and FMCC have not paid back a penny of the bailout is because of some implied guarantee our totally broke government is giving Fannie and Freddie. Especially when it is painfully obvious at this point it is Fannie and Freddie that bailed out the government, not the other way around.

An implied guarantee is no guarantee. A guarantee is a contract. In writing. An implied guarantee can not be enforced because it is not valid.

FNMA and FMCC were sound and solvent companies till the government took them over via fraud.