Replies to post #694710 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

yes - but

recall that F and F continue to have a part of the effort by FDR to both create liquidity and support the working man

[Donotunderstand]

good point

but just about any future will have some form of guarantee or re insurance not available to others who do not do the same for working income America

but yes --- if F and F become say a utility with no special GAIN some where they should not have special obligations

Historically F and F did the extra stuff to confirm the at first EXPLICIT guarantee then for years the so called implicit guarantee

so
again
assumption - by me - is burdens and some money losing business activity - comes with the Treasury guarantee which reduces their borrowing costs as much as the other stuff costs them and makes the profit picture super cleaner

all as I understand it