Let’s just cut to the chase. Fannie Mae and Freddie Mac are worthless, government run, manipulated pieces of insolvent shit. Their books are a fraud. The billions in profits they have reported over the last three years are an accounting illusion. The money they have “paid back” to the U.S. Treasury isn’t cash. It’s an accounting entry. Obama and his minions have counted these fraudulent accounting entries as a reduction in the annual deficits. It’s all a farce.
The proof is in the charts. Fannie and Freddie stocks have plunged by 35% this morning due to some court ruling. None of it matters. These two companies are completely worthless. They have been manipulated by politicians and bankers for decades.
As you can plainly see from the two charts they both traded at $1.50 per share this morning. I’m guessing the idiots who bought the stocks at $6 in March are feeling a little down in the dumps today.
So let me get this straight. Fannie supposedly had revenue of $123 billion in 2013, with an $84 billion profit, and their stock trades at $1.75???? Freddie supposedly had revenue of $76 billion and profits of $49 billion in 2013, and their stock trades at $1.75????
Maybe, just maybe, those numbers are a fraud. Fannie Mae lost $160 Billion between 2008 and 2011. Freddie Mac lost $60 billion between 2008 and 2011. You the taxpayer picked up the tab for the $220 billion in losses. These losses are after the FASB knuckled under and waived the mark to market accounting rules. Using real accounting, these losses would have been $400 billion to $600 billion.
Through the magic of creative fraudulent accounting get a load of these figures:
- Fannie Mae has supposedly generated $110 Billion of profits over the last two and a half years. If these profits were real would their stock price really by $1.75? Of course not. These are fake profits generated by journal entries.
- The truth can be found on the balance sheet. Fannie Mae has $3.2 TRILLION of debt. It has NEGATIVE $128 Billion of equity. That is the definition of insolvent. The assets on their balance sheet are grossly overvalued. If they tried to sell them in the open market they’d be lucky to get 50% of the reported value.
- Freddie Mac has supposedly generated $65 Billion of profits in the last two and a half years. Their stock price also languishes at $1.75. Their financial reports should be on the funny pages. They’re laughable.
- The Freddie balance sheet is a laugh riot. They have total debt of $1.9 TRILLION and equity of NEGATIVE $82 Billion. They are also insolvent.
Now for the best part. These insolvent pieces of shit have reported fake accounting created profits of $175 Billion over the last two and half years and then supposedly “paid back” $213 billion to the U.S. Treasury, falsely reducing the reported annual deficits. When Obama and his minions tout the declining deficits, remember the declines are nothing but Fannie and Freddie smoke and mirrors declines.
The Wall Street/Federal Reserve created fake housing recovery peaked six months ago. Prices are headed south. Fannie and Freddie’s toxic balance sheets are filled with worthless mortgage loans that are going to become even more worthless. The farce will continue until morale improves.