Fannie Mae-No Politics (FNMA)

[jeddiemack]

You ask

Again - if Fannie did not lose cash (only paper losses on asset write downs) where is the cash to pay that paper back ? It has not been used and I ASSUME it was paid to F

Simple.

All that money has gone to the govnerment in the form of interest (dividend) on the net worth sweep. Basically, all the money received in "equity" that was needed becuase of the mythical reserves once the reserves were reveresed went right back to the government in the form of "dividends" instead of reducing the "debt".

Effectviely it was accounting theft.

very effective.