Time for the sheep to be fed their soma for the day. You own Fannie Mae and Freddie Mac. They have lost $200 billion of your tax dollars by guaranteeing hundreds of billions of Wall Street toxic fraud mortgages. Your government has the balls to report that Fannie Mae made a $17.2 BILLION profit in 2012 on $23 BILLION in revenue. WOW!!! What a business model they must have. That is a 75% profit margin. Their stock must be soaring. You betcha. The stock has soared to 88 cents.
This is the kind of gibberish that is spewed from the propaganda machine on a daily basis. Fannie Mae is an insolvent shell. It didn’t generate a profit. Bennie bought their toxic mortgages at full price and moved them onto the Federal Reserve balance sheet. Meanwhile, the handy accountants made a journal entry to reduce their loan loss reserves and presto – you get a $17.2 billion profit. This will then be used to calculate corporate earnings, supporting the storyline of rising profits and undervalued stocks.
So it goes.
Fannie Mae reports record $17.2 billion in profits
WASHINGTON (MarketWatch) — Federally-backed mortgage buyer Fannie Mae reported record profits Tuesday morning, recording its first annual net income since 2006, led by better credit results and revenue. For 2012, Fannie Mae (OBB:FNMA) reported net income of $17.2 billion, compared with a loss of $16.9 billion in the prior year. Meanwhile, net revenues rose to $23 billion in 2012 from $20.4 billion in 2011. Looking forward, company officials said they expect “strong” annual net income in the next few years on improving credit quality and higher guaranty fees. Fannie said it was not releasing its valuation allowance, which was $58.9 billion at the end of last year, on deferred tax assets.