Fannie Mae-No Politics (FNMA)

[JOoa0ky]

Yes, there IS evidence that FNMA did not have "negative core capital". Evidence:

https://www.americanbanker.com/news/fannie-mae-freddie-mac-will-retain-45-billion-in-capital-in-first-step-toward-privatization

Further, FNMA has been permitted to retain some earnings, and they dont have to send "it all":

https://www.bloomberg.com/news/articles/2017-12-21/fannie-and-freddie-permitted-by-u-s-to-keep-3-billion-buffers

Sometimes you are so dogmatic you refuse to recognize truth.

Why are we all arguing over negative core capital...?

Its simply on the financial sheets to remind everyone that the PSPAs need to be addressed before conservatorship can be exited.

Also based on accounting, core capital can be negative. Prime example is filing taxes with net losses and have them carry over to future years to reduce taxable income. That's how trump "does not pay taxes". Surely he is not making "negative" income. Money is still coming in but he is still in the net negative.

Its just accounting... I think you guys are thinking in terms of cold hard cash. Money comes in all sorts of different shapes and forms. You can call the various different forms of money voodoo magic if you like.

Its just SOMETHING there to keep score, that's all it is.