Replies to post #436715 on Fannie Mae-No Politics (FNMA)

[bcde]

kthomp19,

Thanks, There is no way I can convince you.

But I can point to some resources which can help you to understand basics of accounting. Then let me how you are correct and I am wrong.

https://www.investopedia.com/terms/a/accounting-equation.asp

What is the 'Accounting Equation'
The equation that is the foundation of double entry accounting. The accounting equation displays that all assets are either financed by borrowing money or paying with the money of the company's shareholders.

Thus, the accounting equation is: Assets = Liabilities + Shareholder Equity. The balance sheet is a complex display of this equation, showing that the total assets of a company are equal to the total of liabilities and shareholder equity.

[contrarian bull]

Senior preferred is stockholder equity, it is not a liability.

You are thinking from the point of view of a shareholder.

On the balance sheet "stockholder equity" is a liability to the companies. Note the sign (parentheses) on some items.