Fannie Mae-No Politics (FNMA)

[Barron4664]

You say the SPS are equity. Are you sure? The SPS are a novel financial product that has never existed before 2008. (Violation of the Safety and Soundness act of 1992) If anything the SPS are more like obligations. Afterall, if the Companies are obligated to pay back the LP that has been accumulating since day one, how can you consider them to be equity? Isnt equity the residual ownership after all debts are paid off? The SPS LP is a debt that is owed to Treasury. The current value of which is greater than the company. So what equity do the SPS have in GSEs of a negative net worth of a couple hundred billion?