I want to apologize for doubting those guys, Barney, Barack and Bernanke.
Turns out that giving Fannie Mae and Freddie Mac $188 billion wasn’t going to entail any risk at all to the government, its employees, agents and beneficiaries.
Richard Lehmann has the details in Forbes.
“In fact, the two organizations [Fannie and Freddie] have repaid $146 billion of the $188 billion advanced to them since they were taken over,” write Lehmann. “In addition, some $90 billion of ‘profits’ were paid to the Treasury that went toward U.S. debt and deficit reduction.”
And all this time I thought that the trillion dollars stimulus that didn’t create jobs, the green energy scam that killed the green energy business in the US, the bailout and subsidization of the auto industry, the war on energy, the failed Dodd-Frank banking reforms, the Obamacare debacle, the rising numbers of people on food stamps, the deformation of our workforce to part-time employment, the arbitrary reinterpretation of the MACT act, the tax hikes on every single American worker and the failure to pass a budget- or even get a vote on one- since going 0-for-96 in 2010 on the Senate vote for a budget, was just more proof that Democrats knew nothing about fiscal matters.
I now see I was wrong.
Turns out that those guys could hang with Enron, Worldcom, Tyco International and a lot of the other “Big Boys” when it comes to accounting prowess. But they have an unfair advantage: They don't have to follow our laws.
“Does anyone remember that the biggest buyer of Fannie and Freddie mortgages is none other than the Federal Reserve Bank,” continues Lehmann, “a government organization that has no bottom line profit measure. The Fed, with its quantitative easing program, is simply buying $40 billion monthly in packaged mortgage MBS securities valued at prices that are giving Fannie that wonderful profit.”
So the government gave Fannie and Freddie money to bail them out and then bought their product- that is mortgage bonds- via the Federal Reserve, which is taking losses on those transactions?
I have that right, now?
What a scam.
Because of course the Federal Reserve doesn’t have to follow the laws that govern mere corporations, taxpayers, non-profits or any other organization ruled by Generally Accepted Accounting Procedures.
The Federal Reserve doesn’t have to mark down their losses
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