It’s the end of FDR’s New Deal.
Fannie Mae was created way back in 1938 as part of President Franklin D. Roosevelt’s New Deal plan.
It racked up astounding levels of debt.
With the Vietnam War, Apollo Program, and LBJ’s War On Poverty pressuring the federal budget 30 years later, LBJ split Fannie Mae from the government in 1968, and shares in the company (FNMA) were sold to the American public via our stock exchanges.
Proceeds from that IPO capitalized FNMA and provided a financial lifeline to both FNMA as well as to our government (which no longer had to keep FNMA’s massive debt on our Public books). This was the largest, most fraudulent “off balance sheet” event in global financial History.
Not to put too fine a point on the matter, but FNMA has been insolvent since at least 1968, save for that 1968 IPO that bailed it out with investor money re-captializing it.
It’s taken 40 years for LBJ’s slight of hand to be exposed. By 1968, FDR’s New Deal was bankrupt. LBJ cooked the books, spun off FNMA to let honest American shareholders take the bait, and now those shares are worthless. In September of 2008, FNMA was placed into conservatorship (see article above for this thread).
From FDR to LBJ to your local pension fund: With Love! Oh, sorry about your investment portfolios, Jane Q Public.
Social Security is next. LBJ also tapped the physical SS reserves to pay for his War On Poverty, replacing that *cash* surplus with paper IOU’s. Now the Baby Boomers are retiring. Soon SS turns cash-flow-negative, with no cash surplus fund available to compensate.
This is the dramatic death of the New Deal, played out in slow motion over generations. Not that the “elites” who control most news media will grasp it, but all of the above illustrates that Socialism never remains solvent.
And the "insolvant since birth" claim is horsefeathers start to finish.
The LBM not only won't grasp this concept, they won't even report on it, lest the sheeple start demanding specific performance on all the wunnerful New Deal/Great Society BS programmes.