Fannie Mae Preferred S (FNMAS)

[rosen62]

Hamilton and the recent rulings regarding the Treasury acting as another shareholder and the GSEs not being government agencies will all come together soon. Hamilton -to our detriment- used the concept of "implied powers" by the government in order to push and move forward with the creation of his financial system.

Yet, the recent rulings will make it difficult for the government to raise a defense based on Hamilton's view of implied powers as the government acted as a private entity and not as a federal entity with a national concern. This is -in my humble view- why the recent rulings could be critical. So Hamilton for us could be both good and bad. Except that the bad part seems to have been defused.

Let's not forget the inner contradiction: Hamilton was not "private". He *was* the government and he only tried to raise government's credibility only to make it larger and more powerful. Which was needed to create order in the system. His main goal was to help the government, not private entities. This was simply the consequence of trying to raise trust in the government. His merit is that he used that additional discretionary power (the casino edge) in a responsible manner. Not everyone in the government -these days- acts that way.