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Freddie and Fannie - FNMA and FHLMC

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Subject: WJB - Re: Freddie and Fannie - FNMA and FHLMC
Resent-Date: Sat, 23 Aug 2008 12:33:39 -0700 (PDT)
Date: Sat, 23 Aug 2008 12:33:16 -0700 (MST)
From: Walter Burien <>

CAFR1 NATIONAL REPLY POST TO ERNEST - 08/23/08:  Freddie and Fannie - FNMA and FHLMC


You say: "would it have happened regardless, due to all banks being insolvent due to bad loans over the century?"

That is what they would like you to think and it is part true.

The real question  to ask is: "I want to see a detailed list of investors and who defaulted over the last two years on commercial and residential property mortgages?"

Both Freddie and Fannie being federal enterprise authorities, it gave the perfect opportunity for local governments to stash away massive amounts of investment capital where it became "invisible" to the public. Always in the black, always turning out a return (except for the last year). The bubble of spec roll-overs began to burst.

The actions to sure-up Freddie and Fannie are designed to immediately protect the mortgage investors, not the stock-holders or mortgage holders. The theme is to make the environment secure and profitable in the future for the mortgage investors currently backing six-trillion dollars in mortgages with those investors being predominately local and international governments.

The cute part is: These local government entities covertly took the investment capital from the public in the first place to be the primary investors with Freddie and Fannie and now they are using tax-payer funds to bail themselves out and stabilize the government investments that the tax-paying public do not even know exist.

Here is where the crimes come in: Who from the inside players nationally were using Fannie and Freddie in the erroneous roll-over mark-up game that stuck it to the investors / stock-holders?  And, also who from the inside players simply walked off with a few million before they had a chance to roll-over when the bubble burst?

If and audit was done specifically on those two points, several thousand politicians, judges, (city, county, and state) attorneys, and other inside players that made a few extra million dollars on the side from the inside would in most probabilities be indicted; prosecuted; and fall.

The problem is, government will not do the audit on those points, or if they did, they would not make it public due to the fact the public is unaware that their own local. Federal, and cooperative International government players are they primary investors (about five-trillion dollars worth). The public would then ask where did all of that government investment capital come from and what else and how much do they have elsewhere? Massive can of worms there....

So as far as open investigation, audit, and indictments per the two issues noted above, you would have had a much better chance of getting Malcum X ellected as the national spokes-person and Chairman for the KKK in the 60's.

Silence is golden as the theft took place just as much as it is after the fact..

Educate a few local government Law Enforcement Detectives and Police Chiefs on these two points above. Who knows, they may get the ball rolling from the ground floor up, especially if their own pension funds took a hit from the crimes committed by the other government inside players who walked with the cash from Fannie and Freddie and stuck them.

Yours truly,

Walter J. Burien, Jr.

P. O. Box 2112

Saint Johns, AZ 85936

Tel: 928-445-3532



Pension funds pay a salary and benefits at retirement. Any local government can be restructured to meet their annual budget needs "Without" taxes. TRF (Tax Retirement Funds) paying for every City, County, State’s annual budgetary needs! This now makes the people the true owners with government being the true service provider. Government has already shown that a TRF works by example through the management of their own combined multi-trillion dollar pension funds! CAFR1 says: Make it law and make it so!


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> Walter:


> Which one person or group decided to sell mortgages without the contracts at bargain rates to financial houses and banks around the world that led

> to this crisis, or would it have happened regardless, due to all banks being insolvent due to bad loans over the century?


> Thank you.


> Ernest


> ----- Original Message -----

> From: Walter Burien

> To:

> Sent: Friday, August 22, 2008 11:45 PM

> Subject: Freddie and Fannie - FNMA and FHLMC



> CAFR1 NATIONAL POST - 08/22/08



> Please read: then read the PS noted here.



> PS: Here is a snip from the news wire a few days ago:


> "Buddy Piszel, Freddie's chief financial officer, said, "We're managing the firm to not have to access the

> government support."Freddie's stock tumbled more than 19 percent to$6.49. Shares of Fannie Mae, which reports earnings on Friday, slid almost 15

> percent to $11.60."

> ------------------------------------------------------------------------

> Now take that $6.49 and $11.60 per share and multiply times the shares outstanding. That will give you the value of the "shell" which is a

> very small fraction of the Six trillion (the substance) being the value of the mortgage investments held which is separately put up by the

> investors in that vehicle. Even with fractional reserve banking principles being used the value of the mortgages outstanding no where comes

> close to the value of the stock. The investors in the mortgages? Local and federal investment assets. The bail-out of FNMA and FHLMC is not

> to protect the stock holders or the mortgagees, it is to protect the investors. Six trillion dollars worth. That is why it is so important

> to show who the investors behind the mortgages are.. Local and federal governments holding the Lion's share????

> On a last note when FNMA and FHLMC stock cut in half, did that mean six-trillion of investments got cut in half. No they did not. It is the

> default rate that is cutting the shell's stock value which is based on FNMA and FHLMC "management" of the investments held - Six trillion...

> so again, who are the investors behind that six trillion dollars? Primarily state and federal investment assets "invisible" to the public

> that are feeling the pinch of substantially reduced rates of return based on the increased default rate..



> Walter J. Burien, Jr.

> P. O. Box 2112

> Saint Johns, AZ 85936


> Tel: 928-445-3532


> Website: