Replies to post #196371 on Fannie Mae-No Politics (FNMA)

[KingDMC]

Great piece here Navy. Thanks for the continued info!

DMC

[Ripcord01]

Finally someone is digging deeper than just doing sound bite reporting.

The reporters are starting to get to the real point....

Freddie and Fannie were the only 2 major entities left standing at the height of the housing collapse. Remember the infamous interview with Barney Frank (former Senator) where he stated Freddie and Fannie actually had enough capital to remain solvent....its because they actually did have enough to remain solvent to cover their debt.

The Treasury did not need to step in and save them...

You think I'm lying? Please listen to my reasoning...and look at Fannie and Freddie SEC filings from that period 2008, 2009, 2010... The balance sheet tells all.

The two companies were put into conservatorship so the government could support the private market...not Fannie and Freddie. How do I know? Well when you look at the assets on the balance sheet prior to the crash through now you see a period where Fannie and Freddies Assets Triple. How can your assets triple if you have a cash problem? As a matter of fact how can you triple your assets in a housing crash?

The answer is simple...They bought the assets of all the Defunct private companies that bought even more bad mortgage back securities than they did.... You know the same private market that the current bill wants to put into place (rather back into place). Freddie and Fannie backed about 30 percent of the loands prior to the crash...now they back about 90 percent.

They didn't need the money to stay solvent. They needed the money to expand. It would be the equivalent that the GSEs were Target...and walmart, Costco, etc all went bankrupt. Sure the GSEs would do well...but there would be a huge whole to fill and many people would starve and not have adequate basic material needs...because target is not everywhere. The companies would need to expand and expand quickly...and expansion takes a LOT of money when you are going to take over the entire US housing market. Fannie and Freddie cant borrow from the banks.... they aren't allowed to borrow from the Federal Reserve.... And they need a lot of money to expand into all those markets and cover all those loans.. 30 percent of the market to 90 percent of the market...you know 3 times what they had prior to the crash..

So who has the biggest pile of Cash in town...The US Treasury.

Why didn't the Treasury put them into Receivership instead of Conservatorship....cause they knew they would be solvent. Meanwhile the government cant say they are giving a loan to a US agency and making them bigger and would crush out all the private companies that might be left standing. You have to tell the taxpayer the companies are in dire straits and are getting a bailout.

1) Almost every taxpayer hates big government...especially Republican.

2) The government isn't allowed to act like a monopoly and crush competition....and kill private business.....and the kicker...cause people to lose jobs because they cant compete with the US government.

So how do we get this passed everyone...by calling it a bailout...oh and we will do everything in our power to make it a bailout....The Treasury will impose a 10 percent dividend on those senior preferred...and if the companies cant meet those payments they have to come back to the Treasury and borrow even more money...even though the Federal Reserve is lending at .7 percent. We will make their interest payments so high it will look like a bailout.

...oh crap...they have a deferred Tax asset...they can claim it and possibly pay off the majority of the loan we made to them.

...quick...lets rewrite the agreements...we are now taking all their profits..


If you think the Profit sweep was bad...take another look at the whole thing.

If they were not required to file those pesky SEC filings they might get away with it without someone noticing.

[ElBabalo]

Commander, I tell you that most on this board are educated and aware of this and the other article about F&F never needing a bailout, the problem isn't this board its freaking main street (masses) that have been dumbed down over the last 4 decades, they blindly believe whatever the main stream media spews forth onto the public as the truth.
How do you undo so many years of brainwashing? how do you convince average Joe and Marry next door that we need F&F? I do my part ever chance I get, but I tell you that I have a family member that actually believes that F&F goose is cooked, and he was a wall street guy for over 30 years, worked for BOA in Latin America very high position too. He infuriates me every time we speak about Fannie and Freddie, since all he watches is FOX news BS.
GLTY
White Knuckle Death Grip on My Core Shares & Super Long Here Viva Fannie and Freddie Forever

[TradeSmart.ai]

This needs to get stickied...MODS.