Replies to post #705359 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

I agree but

I prefer to say that the NWS was changed --- because the obligation was not stopped. Sorry - but when cash stays in one pocket but IOUs grow in the other pocket - by accounting rules you are no richer as a company

Now - I too hope that some settlement comes along - for whatever reason (politics - courts - common sense and about time) --- and the GOV says for monies paid by F and F the entire LP - SP value is taken down to zero !!

In that case - which could well happen - then those IOUs are wiped out as if they never were written

But if I think of a loan or a mortgage --- if the bank says --- go keep the cash - do not send it to us - but each month we will increase the amount you owe us the that same amount ---- no way would I consider that mortgage stopped !! (And if I owed interest on that growth in principal owed? And its at 10% --- ?)

So I prefer this arrangement - cash stays and IOU is written

but no way does this arrangement - what I call smoke and mirrors - stop the NWS or SWEEP

Again - if GOV wants it can collect on those IOUs - it just can
Again - I too hope that such added levels to the LP are wiped out along with all of the LP and we win and THEN (but only then) IMO did we win by this arrangement

Not an accountant