Replies to post #786909 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

DC
I agree - now its politics
I agree banks like the liquidity
I agree GOV likes the stability and back up

but
how does Treasury get any money ? As I understand it - all income (fees - bond trading - whatever) stays at F and F to a SINGLE bottom line - no item by item profit "moves" --- then all profit in actual $$ goes to F and F reserves/capital. GOV gets IOUs - that I assume can not be used in any FEDERAL budget math

so logic seems sound but for the part that somehow in 2024 there is aid to GOV for budget deficits. (Now IMO if GOV killed the SP/LP as paid off 300 on the 200 ----- and exercised the WTS - the GOV (not FHFA not F not F ) would likely have 100B for TREASURY - in the general fund

[DaJester]

"brings in lots of money for the Treasury, available for any spending an Administration wants to hide with a cover"

While I agree that is what happened starting in 2012 with the NWS, likely for Obamacare, I don't see this as tenable in the long term. It's unconstitutional per Article I, Section 9, Clause 7. "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law." Taking the private shareholder profits for Congress to spend for public use doesn't make sense. They would need to complete the Nationalization so they are not publicly held. Otherwise, it's a taking and will be more difficult to argue otherwise the longer it goes.

The only reason it's not now is because the shareholders still exist, so they haven't technically "taken" the company< with the notion that the Conservatorship is temporary and the property will be returned.