Catastrophic Fannie Mae and Freddie Mac are looking to unload massive liabilities onto the public.

August 6 (King World News) – Gregory Mannarino, writing for the Trends Journal:  (Reuters)—President Donald Trump is meeting with chiefs of major U.S. banks to discuss monetizing mortgage giants Fannie Mae and Freddie Mac.

Let’s start with this.

Fannie Mae and Freddie Mac. What Are They?

Fannie Mae (Federal National Mortgage Association) and Freddie Mac 

(Federal Home Loan Mortgage Corporation) are government-sponsored enterprises (GSEs).

Their job? To buy up home loans from banks and lenders after those loans are made so banks can lend more. Once they buy the loans, they bundle them into mortgage-backed securities (MBS) and sell them to investors. Fannie and Freddie are the hidden engine of America’s housing bubble economy.

Now with President Donald Trump meeting with chiefs of major U.S. banks to discuss monetizing mortgage giants Fannie Mae and Freddie Mac, this is a backdoor bailout mechanism.

How it will work… Full-Breakdown.

Monetizing Fannie & Freddie. If they go public in a major IPO, it’s not because they’re thriving…(everyone knows they are holding EPIC sums of toxic debt), it’s because the government wants OUT of being the backstop.

These are now zombified GSEs (government-sponsored enterprises) holding TRILLIONS in bad debt and loans in default. This is a stealth bailout dressed up in the language of “monetization” and “public offering.” But behind the curtain? Fannie Mae and Freddie Mac are drowning in toxic paper, just like 2008. Trillions in mortgages that will never be paid in full as defaults rise.

So, what is Trump doing?

Step 1. Pretend to “restructure” them by offering shares to the public (aka: THE PEOPLE)

Step 2. Offload the bad debt risk onto investors, mom-and-pop funds, pension plans, mutuals.

Step 3. Use the new capital (from that offering) to paper over the MASSIVE black hole in their balance sheets.

Step 4. When defaults explode, the losses hit the investors, not the Fed, not the banks.

This is NOT capitalism… it’s parasitism.

Why Now?

With inflation spiking, and housing affordability plummeting, the mortgage market is IN TROUBLE. Here, Trump wants to inject capital into the system without direct stimulus.

Risk Transfer to YOU.

And IPO would mean pension funds, passive index funds, and average investors will get stuffed with shares. Meanwhile, banks walk away with underwriting fees and leverage.

The Banks’ Role.

Trump meeting with major banks? They’re being asked to underwrite, advise, and promote, but to buy in as “strategic partners” to lend the IPO credibility. Expect names like JPMorgan, Goldman Sachs, and BofA to benefit.

A Back-Door Bailout Reloaded.

They will not call it a bailout. They will say it’s a “public offering,” a “capitalization,” or “market-based reform.”

But in truth? It’s a shell game, and the people are the mark.

Fannie & Freddie Hold Trillions in Rotting Paper. These GSEs are saturated with mortgage-backed securities tied to overvalued homes in a declining credit environment. Default risk is accelerating. They cannot survive without intervention.

What Trump Is Doing? He’s inviting major US banks to help “monetize” Fannie and Freddie!

Turn bad debt into stocks. Sell that stock to the public. Transfer the risk.

Why Is It So Dangerous?

The real value of these “assets” is collapsing, and it’s no secret. Both Fannie Mae and Freddie Mac are holding TRILLIONS in toxic debt/paper which they want to unload onto the public via an IPO… this enriches the banks via the IPO, and elite, while offloading the liability to Main Street investors and pension funds.

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