Fannie Mae-No Politics (FNMA)

[Donotunderstand]

Never insurance

The GOV viewed its help (debate elsewhere if needed or evil or whatever) as an equity investment not a loan !!!!

The GOV - viewed it as a bail out of a troubled company (debate elsewhere if true or big time bullshit)

As such the GOV demanded and got warrants to REWARD them if things went WELL

Take a minute - if SR NOT PAID BACK means F and F did not do well and had no money !!!

Why would GOV want 79% common stock ownership of a sick puppy !!! - NONSENSE

Paulson did this --- and he took 79% warrants if things went WELL to make money - arguing it is only fair to make extra profit because they helped with equity (not debt) and took HUGE risk (again argue elsewhere if right or wrong about risk but Paulson ARGUED publicly it was a huge risk and thus huge reward --------------- again I am not saying right or wrong but explaining what Paulson wanted --- and why there are warrants ---- HE - PAULSON (this is not bush or BO but PAULSON the architect and detail person) ---[- HE PAULSON wanted big profit for GOV for its actions in what he called a major high risk bail out) DO NOT DEBATE the logic of PAULSON but tell me who the funk wants 79% ownership of a company that can NOT pay back ................. that maybe 4 years later was in deep shit ----? how do warrants do anything for the GOV in that situation ? THEY DO NOT ----- Their value and purpose was to gather tons of profit on the upside