Replies to post #353164 on Fannie Mae-No Politics (FNMA)

[big-yank]

You just need to understand the FACTS better. Here are a few tidbits from the Financial Crisis Inquiry Commission Inquiry report to Congress and the American people, reported by a reputable non-profit opinion group:

- "The GSEs were highly leveraged--owning and guaranteeing $5.3 trillion of mortgages with capital of less than 2%.

- "The value of risky loans and securities was swamping their reported capital."

- "At the end of 2007, Fannie reported that it had $44 billion of capital to absorb potential losses on $879 billion of assets and $2.2 trillion of guarantees on mortgage backed securities..."

http://wallstreetonparade.com/2016/05/confidential-memo-in-the-hedge-fund-battle-for-freddie-and-fannie-comes-out-of-hiding/

I have posted the FCIC data NUMEROUS times, previously, and this report as well. I cannot alter the reality that many people want to ignore the content, or the facts. But the numbers are the numbers... and THE FACTS. They are borne out in FNMA's and FMCC's own audited 10-K's.

The conservatorship was warranted by the metrics of the day in 2008. Whether Amendment 3 was further warranted is now before the courts. I believe that it was an overreach and will be pared back, repealed or replaced by and Amendment 4. How, in any way, does that position equate to "talking negative/hypothetical"?

I own a LOT of preferred stock in this company. Many, many, many zeros. A company is NOT PROFITABLE when its sole source of income arises from DTAs and derivative hedging gimmickery. That is NOT a CORE business, nor does one dollar of that revenue come from having a workable, successful, profit-producing business plan that can sustain that business entity into the future. Fannie had inadequate reserves with which to weather the crisis in 2008. Fannie, today, has inadequate reserves to weather another crisis, even of lesser dimension than 2008. The taxpayer is not willing to be a Sugar Daddy to secure investment returns to GSE shareholders. The idea that all FnF income created via government largesse should be 100% swept to shareholders in perpetuity is just as offensive as the similar claims levied against government.

Period. End of story.

JMHO.