Fannie Mae (FNMA)

[contrarian bull]

But where does all that debt go? $4trillion, it doesn't just disappear

Remember - it is debt owed by homeowners to f&f. No matter what happens, those millions of homes still have mortgages, and still need to make their payments. Somebody will own and service all of those loans, demanding a monthly payment.

The situation where the feds or f&f are on the hook is if those mortgages go into foreclosure and don't pay... or if they are sold on the open market at a discount. Kind of like 2007.