Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

By not EXPLICITLY guaranteeing Fannie Mae and Freddie Mac MBS, the federal government keeps up to $13T+ off the liabilities side of the federal balance sheet.

How much longer do we have people believe in this?

Everyone seems to believe it, that the federal government has to cover agency MBS and TBTF deposits (and apparently not TBTF banks like SVB).

I heard that the Emperor wears no clothes, is that true! HeeeeHeeee !

https://www.bloomberg.com/news/articles/2023-03-13/federal-home-loan-banks-to-raise-64-billion-in-notes-offering

"The US system of Federal Home Loan Banks, a key source of cash for regional banks, is seeking to raise about $64 billion through the sale of short-term notes, according to people with knowledge of the matter.

The offering comes amid a banking crisis that has toppled three lenders in less than a week. The FHLB system of 11 regional banks is a Depression-era backstop that private banks can use for short-term funding without the stigma of taking money from the Federal Reserve. It’s widely seen as a safety net and has been called the “lender of next-to-last resort” — a play on the nickname for the Fed’s famed.."