Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Does the SPSA say that the UST will provide UNLIMITED FUNDING or is it capped?

You know, when I worked for Fannie Mae and pre CONservatorship, the only UST Commitment at the time was a $2B Line of Credit at the UST.

The fact of the matter remains, that despite all this "living will" talk and plans, the federal government will likely step in during the next inevitable financial crisis to rescue the TBTF banks and the GSES simply because they are the lynchpins of the US Economy.

Right now the Federal Debt Outstanding is $31T, do we really need to pile on more Federal Government Liabilities by making the GSE MBS federal government guarantee EXPLICIT?

https://fred.stlouisfed.org/series/GFDEBTN