Let’s take a short walk back here while we have a moment to do so. Let’s take a look at the governments own words and what they have said about the conservatorships of Fannie and Freddie. Never mind the opinion of bill Ackman, Bruce Berkowitz for now.Let’s just look at what the government has said in regards to the GSEs and most importantly what they have lead the shareholders of Fannie and Freddie to believe. Let us begin by traveling back to 9/7/08. The day after Fannie and Freddie were overthrown.The treasury department released a very frank and honest document entitled
Q: What is a conservatorship?
A: A conservatorship is the legal process in which a person or entity is appointed to establish control and oversight of a Company to put it in a sound and solvent condition. In a conservatorship, the powers of the Company’s directors, officers, and shareholders are transferred to the designated Conservator.

Q: What is a Conservator?
A: A Conservator is the person or entity appointed to oversee the affairs of a Company for the purpose of bringing the Company back to financial health.

Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company’s assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market.
There is no reason for concern regarding the ongoing operations of the Company. The Company’s operation will not be impaired and business will continue without interruption.

Q: When will the conservatorship period end?
A: Upon the Director’s determination that the Conservator’s plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.

Q: What happens to the Company’s stock during the conservatorship?
A: During the conservatorship, the Company’s stock will continue to trade. However, by statute, the powers of the stockholders are suspended until the conservatorship is terminated. Stockholders will continue to retain all rights in the stock’s financial worth; as such worth is determined by the market.

Q: What happens if the Company is liquidated?
A: Under a conservatorship, the Company is not liquidated.

Every time I read this questions and answers I literally get the chills. Folks this is how the government portrayed our situation the day after the conservatorship went into place. Now I know those of you who are fairly new here must be thinking that this was six years ago surely their official statements must have evolved quite a bit from here. Actually yes, yes they did but one problem, they kept their change of plans a big secret. But let us examine more let us travel up to January 5th, 2009, shortly after the conservatorships were put in place. In a congressional research service report done to help members of congress understand the situation with Fannie and Freddie. The report titled  “GSE regulatory reform frequently asked questions” we find the question: ”What is Conservatorship? Conservatorship is a special legal status under which the GSEs are taken over and managed by the FHFA acting for the federal government. The goal is to preserve the assets of the GSEs and to return them to a safe and sound status……”
Now here’s where things take a pretty dark turn, let us take a look at one key quote from the secret Treasury memo from Treasury secretary Tim Geithner to the FHFA dated December 20,2010. – “Reasons to set the PCF- Makes clear the administrations commitment to ensure existing common equity holders will not have access to any positive earnings from the GSEs in the future”
Please take a minute here and review everything that was shared publicly up until this point, Remember the government was telling current and prospective shareholders that if Fannie and Freddie were able to be restored to a safe and solvent condition they would be released. It is clear that this was a lie; that’s a fact not an opinion based entirely on the governments own statements.
Let us continue though, surely I know a lot of our foreign friends think that surely after the secret memo the U.S. government must have begun telling the truth?
Think again,From another CRO fact sheet dated 8/10/12 we find this-
What Is Conservatorship?
Conservatorship of Fannie Mae and Freddie Mac involves FHFA taking control of the GSEs. As
conservator, the powers of the board of directors, officers, and shareholders are transferred to
FHFA. A conservator can also cancel certain contracts. This is authorized by the Housing andEconomic Recovery Act of 2008 (HERA).44 The goal of conservatorship is to preserve the GSE’s
Assets and to return it to sound financial condition that would allow the conservatorship to be ended.
So as of 8/10/2012 the government now even specifically stated that if the companies were returned to financial health they would be released!
OK, now buckle up if you are not sitting down, please do so now. We now proceed a mere 7 days from the 8/10/12 fact sheet to arrive at the date of the third amendment sweep agreement. This was when the government decided with the government to confiscate all of the profits of a private company for themselves. As I had posted before -One person who has vast historical experience on these issues, when reviewing the third amendment sweep said,” I find this absolutely chilling, orders such as this were commonplace in the former Soviet Union” So there it is, in their own words for the whole world to see.

As I said earlier, there will be a second part to this post where we will address the question of motive. I will also caution everyone to avoid trying to place the blame on either political party for perpetrating this heist, to do so is a fools game. Until one of them reverses course and puts an end to this chilling gross abuse of power they both stand equally guilty. I will offer quite a few new insights into what is motivating many of our enemies in DC. Not only what lead them to even consider this but what they are planning next. Although I will be examining motives in great detail, the two root causes are no different than what we find in most massive securities fraud cases, Greed and grossly misguided principles. Keep the Faith!

9:7:08 treasury fact sheet 2