JerseyHighlander,
Thanks for the extra explanation and correction.
The guy from Forbes said this method of putting “projected tax credits”
as capital is technically possible but apparently not a Kosher thing
to do.
What also got me is that he said Congress had called at least one
of the groups onto the carpet over irregularities in 2003.
Sounds like either Congress punted and/or the Freddie Mac/Fannie Mae
accountants sweet-talked their way out of the situation then.
But it appears either way they just managed to continue operations
and continue to pile up problems.
http://calculatedrisk.blogspot.com/2008/09/freddie-mac-and-two-year-rule.html
That blog post is a clearly defined explanation of what is happening, the MSM finance/business/Wall st beat reporters have been blatantly following their editorial biases, especially the NYTimes Norris and the Washington Posts’ Gretchen Morgenson.
A few days ago Charlie Rose had Norris, Morgenson, Prof. Nouriel Roubini of NYU Stern, and Mohamed El-Erian CEO of PIMCO on as guests. Norris and Morgensen, when having to talk off the cuff with their demagogic talking points being challenged by Roubini and El-Erian, showed just how out of their depth their are in comprehending let alone reporting the Freddie and Fannie Mac situation.
And Norris and Morgensen have been around a while, neither are greehorns, so when some young nub reporter for other publications try to report this stuff it’s just a travesty of a joke.