Fannie Mae Made a Fortune With Your Money
I just read a heart warming story about a struggling company that worked hard, crawled back from the edge, and made a record in sales. This kind of determination is what makes America great, right?
Oh wait, just a few things you should know to help put the story in context:
1) The company took ridiculous chances and mishandled everything.
2) The company recovered with everyone else’s hard earned money since they didn’t have any of their own.
3) The company isn’t repaying a dime to its creditors.
4) The company’s latest success has absolutely nothing to do with its hard work.
That doesn’t sound much like the American dream any more, but maybe that’s just how things go.
I’m talking of course about Fannie Mae. This GSE made a real mess of its books during the housing crisis, begged for government handouts, then claimed it was back on track because of
– lower delinquencies (all the foreclosures happened already, right?)
– home prices rising (no thanks to them)
– and higher sales of Fannie Mae properties (they raked in $17.2 billion NET in 2012).
Oh, and $10 billion from Bank of America. Come to think of it, that’s our money too, isn’t it? So it’s just one big circle. Or more to the point, it’s a highway that goes in a circle with only an on ramp for our cash to get in the mix.
I’m really annoyed about this one. Anyone else have something to say?