Zero Hedge
Submitted by Tyler Durden on 08/17/2012
While one may wonder about the implications of the just announced "accelerated windown" of the GSEs, predicated in no small part by the surge in animosity between Tim Geithner and the FHFA's Ed DeMarco, there is one aspect of the announcement that is completely and utterly unambigious: as part of its justification to demand faster liquidation of Fannie and Freddie's "investment portfolio" Tim Geithner gave the following argument:
This will help achieve several important objectives, including... Ending the circular practice of the Treasury advancing funds to the GSEs simply to pay dividends back to Treasury
In other words not some fringe blog, not some "partisan" media outlet, not some morally conflicted whistleblowing former employee seeking immunity, but the US Trasury itself just admitted it had been engaged in circular check kiting scheme, which essentially has all the components of a Ponzi scheme in it, ever since the nationalization (about which there is no now doubt and which means the GSE's $6 trillion in debt is now fully on the Treasury's balance sheet) of Fannie and Freddie in 2008.
Transfer one more conspiracy theory into the conspiracy fact bin.
Source: ZeroHedge.com
Comments
yup, we been awaitng this, i
yup, we been awaitng this, i seen this the reason they killed JFK, he wanted to take away the charter to the FED, and bring the boys home from viet nam. thanks to the fed America is a corp., in as make citzens, who have to pay irs, unless ya take back your identy...
are we done yet???