Fannie Mae-No Politics (FNMA)

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The irony is that the whole plan was to force a bailout and put the credit risk on the US government. And here we are with the work around. Rather than put 5 trillion dollars of 'bad debt' on the books, seriously jeopardizing the US credit rating and value of the dollar they "invested" in the private companies, and threw them into conservatorship. Obviously we know how that played out, but it did keep the debt off the books. Even the qualified buyers were way upside-down on their mortgages. Government purchased a $#IT ton of MBS. Enter HARP, this wasn't about helping individuals, it was about improving the quality of the outstanding MBS. After everyone stopped freaking out HARP and low interest rates increased buying and refinancing. Government then recouped $ three ways 1) sale of the now good MBS they purchased 2) 100 Billion or so in big bank settlements and 3) everyones favorite the Net worth Sweep, that ensured that all of the bank settlements went to the treasury. It is no coincidence that the NWS occurred right before the first BofA settlement, they were negotiating with the conservator... And now here we are strong dollar, strong MBS market, government is whole, last thing to fix is the private companies.