re: Some common myths about the markets that are untrue and/or 99% do not know

quote:

---

The FHFA and the Treasury have been sweeping all of their profits ever since they found out the GSEs were profitable. They forced them into conservatorship on the hilarious grounds that they had solvency risk even though it was just some deferred tax liability reversal causing cashflow issues. The Feds knew it was B.S. but frothed at the mouth over the billions in profits they could steal. I think the sweep ended a few years back but not sure.

---

Yeah, it's been crazy over the years. I'm pretty sure it was the "net worth sweep" that gave Obama leverage to stare down the original debt-ceiling standoff for much longer. He knew the Treasury was still taking in billions.

I personally believe it's all unconstitutional, but man, it's just a plate of spaghetti now. I believe Mnuchin had $100M of these in his PA when he entered office - and he tried like hell to get them to pay off...STILL to no avail. Probably stuck forever.

I think there have already been books written about it, but perhaps one day like 50 years from now, someone will write the definitive account and this will be understood by history students to have been a ridiculous travesty.