It is critical that we blast out the simple truth that Fannie and Freddie did not need one penny to survive the financial crisis. Mike Ciklin provided both a new simplified version of the cover letter, and we again pared down the original papers to increase simplicity and ensure that the critical facts that this work exposes is not lost. Essentially the new paper is just paper one with all conclusions and accusations removed.
As I explained in a prior post:
I have worked with Adam and Mike to simplify the Forensic accounting papers and provide a short intro letter.We understood that many of the bold conclusions and accusations were distracting from some of the concrete explosive facts that this work contained.We will build on this going forward and try to break things down and walk people through what can be a complex maze our government has created with their many lies. I have attached the simplified version as a PDF and cover letter below.
Joe Light Misconstrues
Joe Light WSJ clearly did not read this post when he concluded that we were walking back our conclusions and allegations.In no way should this be interpreted to mean that we are in some way walking back our the conclusions and allegations in the first papers.We are simply presenting the facts in an orderly and nonconfrontational way. For now we want folks to draw their own conclusions as to what this means to the other aspects of our cause. I believe that once this on simple fact is digested things will grow crystal clear.
Revised/simplified paper to include only paper one:
Revised Final Cover letter with Edits by Mike Ciklin: (This letter is within the simplified paper)
A Quick Note – July 10, 2015
““A Forensic Look at the Fannie Mae Bailout” has generated some interest since its release. For the sake of simplicity and clarity, we have stripped out all of the conclusions. Whether you believe that Bush/Paulson/Geithner sincerely believed that Fannie Mae “might” need more capital to get through the crisis is irrelevant for purposes of this discussion. For now, let’s give them the benefit of the doubt and say that they truly believed that Fannie’s exposure was likely to be far greater than it was.
We want to bring your attention to a key fact that an honest look at the math provides: If Treasury had extended a $200 billion dollar line of credit to the GSEs, they would never have had to draw a penny.
We realize that others have discussed similar ideas, but no one had completed the requisite accounting exercise to determine how much money Fannie Mae would have truly required to meet its obligations. Most people just assumed that the GSEs would surely have needed some financial assistance in light of the magnitude of the crisis.
The basic overview of what our analysis proves is as follows:
In 2008, Fannie and Freddie were placed into conservatorship. Billions of dollars were injected into them as a result of non-cash accounting items. Losses never materialized and the money was sent back to Treasury with sizable interest. All in all, the funds that Treasury forced the GSEs to take simply weren’t needed.
The bombshell of the extensive research is that Fannie Mae’s profits and capital were sufficient to cover all obligations without drawing one penny from Treasury throughout the entire financial crisis. Some immediately tried to discredit this fact with the rebuttal that Fannie needed billions in order to roll over its short-term debt.
David Fiderer and Jody Shenn handily struck down this assertion. In September of 08, the GSEs had no material issues funding their short-term debt.
In order to have an honest debate about the future of housing finance in America, people must know the facts. The facts presented here should materially alter the debate.”
#FannieGate Smashes The Lies
Our #FannieGate Twitter campaign has become a household word and has been noticed by every major player in our cause. I urge all of the Patriots on Twitter and other mediums to launch a concerted effort to get the revised paper/cover letter out to a wide audience. We must not let up on this until this simple fact is both widely known and accepted. Any debates regarding Fannie and Freddie should be immediately drawn back to this.
I would love to see this bombarded upon all of our political foes as well.Please get this on every possible site connected with Rep. Ed Royce, Peter Wallison. Sen. Corker, Sen. Warner and more.
Truly In The Drivers Seat
Both Trevor Thompson and I are working on a massive paper concerning the massive political ramifications of the Fannie/Freddie debate. We intend to bring together the huge coalition of support the truth has received over the last few weeks.From the forensic accounting to the National Black Chamber and Rep. Waters.I will be posting a nice summary /preview soon, our new initiative like many before it will have DC buzzing for days.
This coupled with the one simple truth will play an immeasurable role in achieving our freedom.With the help of many brave patriots, we now have achieved our long-sought goal of dominating and controlling the majority of this debate. We are truly in the drivers seat and are providing the leadership ad guidance that our President chose not to.
Revised/simplified paper to include only paper one:
Keep the Faith!