Replies to post #343246 on Fannie Mae-No Politics (FNMA)

[rekcusdo]

Uhhhhhhm....the 200 bill credit didnt exist in 2008.

[Zargis]

The $200 billion credit line is the bailout funds still available, reserved for the GSEs.

I don't agree with the Freddie Mac CEO however. It seems rather than the credit line preventing under capitalization, the credit line only prevents any problems which normally would arise from being under capitalized. In that, if they need money they can request it. This does not mean they are adequately capitalized.

Having a non-utilized credit line and actual hard cash are not the same when the credit line is a loan.

Be well,

-Zargis