Fannie Mae-No Politics (FNMA)

[chessmaster315]

Nonsense!!! The MBS are guarnteed by PRIVATE mortage insurance, with premiums paid by the borrower. There is no government guarantee against losses!!! If there was a gov. guarantee, then the government would owe me money!!!!!! If you read the prospectus circular for FNMA preferreds, it specifally states the government does not guarantee the securities, that the risk lies on the investor. Thus, the investor, who swallowed the losses, not the government who profitted, deserves the dividends.

The gov. uses the term "implicit" government guarantee. There is no such thing! Its like a salesmans promise. You get the guarantee that is written down, not the one that crooks boast. This is the "excuse" they use to confiscate profits, and it does not fly. The government, on one hand argues the securites are not guaranteed, in the circular, and on the other hand, there is a so called implicit guarantee.