Fannie Mae-No Politics (FNMA)

[big-yank]

Thanks. The point that is missed by most "experts" in Fannie Mae and Freddie Mac affairs of late is that until 1968, Fannie Mae was a government entity. It was privatized by President Lyndon Johnson to get its carried debt load off the Federal books because of the mounting expenses of the unfunded Viet Nam War. Much scrutiny has been given to the question since conservatorship of whether the GSEs debt must again become part of the governments next and perhaps greatest accounting nightmare.

Trump wants to pump-prime the economy with $1 T in infrastructure investments. Does anyone believe he also wants to risk transferring about $5 T in additional Fannie & Freddie debt onto that same ledger at the same time he enters office?

I DON'T THINK SO. This is why I have concluded the conservatorship must quickly come to an end. Trump does not want to go down in history as the President that sent the USA into bankruptcy and decline into a third rate country. Increase the Federal deficit to $26 T and that is precisely what will happen.

http://content.time.com/time/business/article/0,8599,1822766,00.html