Replies to post #320186 on Fannie Mae-No Politics (FNMA)

[rocco2]

I could not have prosed it better my self...

Today Fannie Mae is a cash-generating machine that sends billions of dollars in quarterly dividends to the Treasury. These business-generated cash flows provide the Treasury with monies to fund Congressional appropriations and delay the harsh reality of asking Congress for an increase in the legal debt limit which is a controversy in itself. Because of the terms of the takeover, Treasury can increase its dividend payments by simply making a managerial decision to increase their investment in Fannie Mae and thus increase its cash dividend payments.

[stockprofitter]

Good question. Since its established that (per the Offering Circular on Fannie preferred quoted in previous post):
1. Fannie mae is NOT GUARANTEED BY THE GOVERNMENT AND
2. Shareholders, not taxpayers, are "on the hook" for losses.

It begs the question:
Why is the government lying to us, telling us that "taxpayers are on the hook" and "taxpayers deserve profits of fannie mae because taxpayers bore the risk"?
Neither are true. The goverment also exaggerages the amount of the bailout which was NOT 187 billion, but 120 billion.

*Best Post in the past 8 Years*

I would be cringe if I work for the government and come across this message.

[stockprofitter]

Like.