Fannie Mae-No Politics (FNMA)

[Donotunderstand]

The simple answer - with no context
I do acknowledge that capital appears to be growing under DJT
And as I have said - to be fair to me - that while overall I liked BO - he funked us with the illegal NWS

Now - more context
I believe in 2018 or so Mel Watt convinced Mnuchin (who may be the real culprit) to allow F and F to keep 3B each as cash - capital. Does that ring a bell ? So yes it started under DJT MNUCHIN WATT

but - the total ability to count lots of money - earnings as capital comes with a MASSIVE catch
For every dollar of capital - and it is capital - that F and F grow (by keeping cash !!) the obligation that Treasury keeps on it books - the LP - that to ESCAPE conservatorship if Treasury so insists -- also grows by $1
So - as you have seen me say over and over - to me its smoke and mirrors
F and F keep cash - but write an IOU to TREASURY - that at its discretion it can collect for same $
now
as I see it- here is the lay of the land on capital given that the cash/capital is building up at F and F - but the LP is also growing - dollar for dollar!!!
IF TREASURY decides it wants the full LP obligation then nothing good was done - that cash capital is wiped out to zero - to zero as GOV calls in the IOUs
IF TREASURY decides to reduce (cut by 50% or kill !!) the LP obligation THEN and ONLY THEN
the capital in cash that F and F hold becomes - that day - TRUE capital and we win and I will post a TY to DJT