Fannie Mae Needs $8.4 Billion More

It has gone from scary to hysterical. Fannie doesn't even generate enough revenue to cover the interest payment on the money it has borrowed. Do ya think they will ever be able to?  Doesn't matter cuz we have the tea party and they will make sure the gov don't raise taxes to pay for all this stuff. Ya they will demonstrate and pay Palin to speak at the rallys and  that, oh ya, that will send Washington a message. Oh ya.

When Treasury provides the requested funds, the aggregate liquidation preference on the senior preferred stock will be $84.6billion, which will require an annualized dividend of approximately $8.5 billion. This amount exceeds our reported annual net income for each of the last eight fiscal years, in most cases by a significant margin.

Karl sums it up.....


David Walker, the former US Comptroller General (accountant) who resigned  after, I believe 8 years, trying to convince our dumbass leaders that the US is headed for bankruptcy, and even hit all media outlets like 60 minutes, 20/20.... etc even toured the US with a "Fiscal Wake Up Tour" to alert us folks of why we must change the direction of this country. He is a great speaker and is worth a google or youtube search to see what he has to say.
Anywho David was on MSNBC this morn and he was saying we are worse off than Italy, UK, Spain.....etc. and will be like Greece in 5 to 10 years if we don't start living within our means. Taxes are going up he said, they have to. We have no choice.
Oh and by the way Greece will default, this so called bailout is just kicking the can down the road. Greece, like Fannie and Freddie, can't even generate enough revenue to make the interest payment on the money they owe. But yet they are borrowing more.
Food for thought: If we had to pay the same 10 year yields as we did back in the 90's, the interest on our debt would cost roughly $800B to $1.2T a year. If we had to pay the same yields as we did back in the 80's it would cost us around $1.5 to $2 Trillion. It now costs around $450B.
Can you imagine all the income taxes and corporate taxes we collect going just to pay for the interest on our debt? What a shame.
Think about it.
Someday Americans will have to ask themselves before we invade another country, extend unemployment beni's , add more food stamp recipients, finance more cars and homes, promise more prescription drug or healthcare coverage....... etc........... "Can we afford it"?
Something we haven't had to ask our gov in many moons.
As David Walker said, "There are two kinds of taxes....... current, the kind you pay now, and deferred, the kind you have future taxpayers pay, also called deficits".