We Hate Banks! And Wall Street! But We L.O.V.E. Us Some Fannie!


It continues to continue.

Each and every day we hear from Washing that we hate banks and business.  And look, there’s a lot to hate.  When it comes to shady deals and crooked crooks, banks and Wall Street are full of ’em.  We all want ’em gone.

But serious.  If you’re gonna call out greedy crooks, you should make sure you call out ALL greedy crooks.

Especially the ones that work for the government:

(Reuters) – Fannie Mae, the largest U.S. residential mortgage funds provider, on Monday asked the government for an additional $8.4 billion after the company lost $13.1 billion in the first quarter.

Including the latest request, Fannie Mae will have received more than $84.6 billion from the government, and the firm said it saw no end in sight to federal assistance.

Ahh joy.  The never-ending fun that is the government.

But, speaking of government, we have it under control right?  We know what we’re doing and how to get out of this mess?

…more than a year and a half later, Treasury Secretary Timothy Geithner has only just begun the process of figuring out how to overhaul the U.S. housing finance system.

Hmm, nope.

Do you know what happens to companies that quit making money?  They go bankrupt.

Wanna know what happens to government corporations when they quit making money?

“Given our expectations regarding future losses and draws from Treasury, we do not expect to earn profits in excess of our annual dividend obligation to Treasury for the indefinite future,” the company said.

Because of current trends in housing and financial markets, Fannie Mae expects to continue having a net worth deficit in future periods and to need to tap more funding from the Treasury.

They tell the government they won’t make money and then wait for the government to GIVE them that money.

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