Why should I care? (part 2)

Say, you do not live in the same neighbor as the house we've talked about last time. You actually live on a different side of town or in a different county or state. Should you still care? Lets see… When Fannie Mae acquired the loan for the house we've talked about last time it actually paid $100,000 or so and financed it through a debt instrument guaranteed by the Federal Government. What do you think happens when a creative Sales Manager and Associate Vice President at Fannie Mae Lea France decides to sell it for $60,000? Does anybody need to pay the difference? Who is the lucky winner? You've guessed it right, the Federal Government which guaranteed the loan. Every month the Federal Government writes a big fat check to Fannie Mae so Fannie Mae can continue on its mission of stabilizing community values, promoting home ownership and making friendly investors richer.

Next year your taxes will go up. When you will be writing a bigger check to the IRS do not forget, our lucky investor from California is happy you are fulfilling your obligations so the Federal Government can continue writing checks to Fannie Mae and Fannie in turn will be able to continue on its mission of keeping the friendly investors happy.  Send a nice letter to the investor and his Fannie Mae sponsor, I am sure they would love to hear your story. You know their names. Sorry, I keep forgetting this is just a coincidence.

Also do not forget to send a nice letter to your Congressmen who just approved the higher debt ceiling. Now you know why Feds need to print more money and you need to deal with the inflation. Its all about keeping the big boys happy.

And after all, how do you know your state and your county is not on the list of our sweet duo to hit next, coincidently of course?