You got it! At 80% the corporate debt of F&F will have to be added to our National Debt. F&F debt is much more than $7T, more like $20T.
Going back to the Nixon era's National debt 'crisis'. The 'crisis' was mainly due to our bourgeoning increase in oil imports, and our war in Vietnam that created a massive increase in the debt. The solution, in 1973, was to do an IPO for Fannie and remove, at the time, $5B from our National debt. A well subscribed New Issue was able to raise a huge sum for the Treasury as well as to remove Fannie Mae's debt from the National debt. This act served to subdue the 'debt crisis' raucous filling the press at the time (imagine, the outrage today at @ $33T). From 1973 onward, Fannie Mae, and later Freddie Mac, were publicly held companies just like GM and IBM. They had a BOD, an annual meeting, and an outside auditor etc...
I was young at the time and did not give much thought to the press's reasons for the debt hysteria. In retrospect, and armed with 'fake news' awareness, it is now obvious to me, that there was a well orchestrated Wall Street agenda to profit from the projected IPO income and the press was recruited to propagate the 'crisis'..
Well, now, these companies were well intrenched as PUBLICLY HELD COMPANIES, entitled to the same constitutional shareholder protection as any other publicly held company. Government interference in the operation of these companies is a gross violation of Law. No Federal agency has any right to confiscate these companies. especially, when they were fully solvent and operating for the public good. I can't see any justification for the Treasury or FHA to intervene. Yes, there was a financial emergency, the government had to correct it.
Good! I get it! Why not just issue $Billions of Treasury debt to fix the problem that our congress was largely and integrally responsible for. A private entity could not, and should not, shoulder the entire solution to the crisis on the back of its shareholders. There was plenty of shenanigans' going around in the financial community in 2005-2008, why did the 'wise' Treasury officials not attended to those misdeeds at the time. To blame F&F for the crisis is simply scapegoating the victim This whole SAGE sickens me!
