Fannie Mae is the strange beast created by the government to be neither this nor that. It has the image of neither private or government. It has a long history of significant scandal which are still being investigated and it has not been able to publish a clean audit for some time since it can't balance it books.
And why is it still breathing? It has this strange status that it will not fail as the government would step in to save it since it holds so much of the nations mortgage paper.
And now it is offering 7 billon in preferred stock and probably at a high interest rate. Freddie did the same think last weak so why shouldn't Fannie do it this week?
You may say this is bazaar. That it is something that Alice while living under ground might have experienced. And i don't thing many would disagree with you. But as the nation becomes more distorted in it's economics we should expect to experience more bazaar responses to impossible situations. And then one morning it will just freeze up as all the games will have been tried and found to be smoke and mirrors.
So can make believe be felt by us? We'll those who will have to pay the wizards... the wage earners which is those who have taxes with-held will feel this make believe in their checks and commissions.
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