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Monday, December 05, 2022 9:31:38 AM
not sure I understand the below
Constantly it is written that money is why the Government needs to keep the GSEs in the conservatorship
If by that you mean the dividend is cash to the GOV it must have --- then I agree that is nonsense
Those who post it was to secret money to pay for ACA do not know this is the hair of the tail of the big dog cost AND APPROPRIATED TAXES for the ACA
The one that makes sense - RE MONEY - is the GOV argument (while false IMO) that the markets demand a GOV GUARANTEE or hell will break lose. I think such Guarantee reduces cost of capital/new funds for F and F but that is the limit of its value now. That said - if GOV wants - after F and F have 100B in reserve and GOV made $100B to keep the guarantee "for show and confidence" I agree 100%
Constantly it is written that money is why the Government needs to keep the GSEs in the conservatorship
If by that you mean the dividend is cash to the GOV it must have --- then I agree that is nonsense
Those who post it was to secret money to pay for ACA do not know this is the hair of the tail of the big dog cost AND APPROPRIATED TAXES for the ACA
The one that makes sense - RE MONEY - is the GOV argument (while false IMO) that the markets demand a GOV GUARANTEE or hell will break lose. I think such Guarantee reduces cost of capital/new funds for F and F but that is the limit of its value now. That said - if GOV wants - after F and F have 100B in reserve and GOV made $100B to keep the guarantee "for show and confidence" I agree 100%
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