As you can see in 2008, fannie and freddie started losing money.
But they really did not!
From 2008 to 2009 they wrote off assets as a loss, but before the ACTUAL LOSS occured.
This was instructed by the FHFA who took over the GSE's in 2008.
This amount was $130 billion in write downs! This gave the treasury and FHFA the needed reason for
why fannie mae and freddie mac were bad! Remember no actual loss took place! Only an accounting
write down! Later in mid 2011 you can see Fannie and freddie started to break even and profit, It was then
that the Sweep or Expropriation of the GSE's came to mind!
Reverse the write downs that never needed to be taken in 2008 and feed over $230 billion to the Treasury!
Now if the $130 billion in 2008 was never needed to be written down, how would this graph look?
The losses would have been around $50 billion for the two! The real problem with that is these two had over $70 billion in capital and would have never needed $1 single dollar from the treasury!
So why the takeover? The GSE's bailed out wall street! FHFA used Fannie mae and Freddie mac to
buy up all the crap loans and refinance them with HARP and HAMP federal programs.
What did they refinance them into? 30 year mortgages!!
- PVCT shareholder blog
- GILD shareholders blog
- FANNIE FREDDIE GOOGLE GROUP
- Bill Maloni GSE
- FNMA - YAHOO message board
- FNMA Real Time QUOTE
- $60 per share, target
- Throwing out the case: Perry Injunction
- Why the FHFA took over Fannie and Freddie and AIG
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