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is this for real? does anyone have any info that proves this right/wrong?

hidenotslide 9y ago
Almost assuredly false. The Federal Reserve balance sheet is US treasuries and mortgages, and Fannie Mae/Freddie Mac are mortgages as well. Probably not a complete data set.
- deleted 9y ago
  [deleted]
- FabHK 9y ago
  US treasuries and mortgages are liabilities, though, right? This is the asset side of the balance sheet.
  - hidenotslide 9y ago
    Treasuries are liabilities when the government issues them and assets when the Fed holds them. One person's liability is another person's asset.
    - FabHK 9y ago
      Right, and the graph was about the assets of "the US government", not about the Fed.
- noobermin 9y ago
  If that's the case, shouldn't this be flagged? Also, you mentioned the Fed, which isn't the same thing as the US gov't, right?
  - hidenotslide 9y ago
    I don't really want to go down the conspiracy theory rabbit hole of who does what at the Fed but it's main decision makers are government appointees, it was established by an act of Congress, and it remits its profits to the Treasury. Ginnie Mae is part of the government as well (also mortgages). Fannie/Freddie are GSE's but currently under directly government control since the financial crisis. I'm not sure how the accounting works, but they are somewhat autonomous and have their own balance sheets.
    - tanderson92 9y ago
      It's fascinating accounting-wise. Matt Levine has a good write-up here: https://www.bloomberg.com/view/articles/2016-08-08/fannie-and-freddie-will-be-profitable-after-their-next-bailouts-too https://www.bloomberg.com/view/articles/2016-08-08/fannie-an... The interaction of the accounting rules and the new tax plan was fascinating too because the value of their deferred tax asset changed: > “A reduction in corporate tax rates would require us to measure our net deferred tax asset using the new rate in the period in which the rate change is enacted, resulting in a one-time charge through the tax provision in the period the tax rate was changed, ...” More here: https://www.housingwire.com/articles/42130-trump-to-sign-tax-reform-into-law-that-will-trigger-fannie-freddie-treasury-draw https://www.housingwire.com/articles/42130-trump-to-sign-tax...

Almost assuredly false. The Federal Reserve balance sheet is US treasuries and mortgages, and Fannie Mae/Freddie Mac are mortgages as well. Probably not a complete data set.

deleted 9y ago
[deleted]
FabHK 9y ago
US treasuries and mortgages are liabilities, though, right? This is the asset side of the balance sheet.
- hidenotslide 9y ago
  Treasuries are liabilities when the government issues them and assets when the Fed holds them. One person's liability is another person's asset.
  - FabHK 9y ago
    Right, and the graph was about the assets of "the US government", not about the Fed.
noobermin 9y ago
If that's the case, shouldn't this be flagged? Also, you mentioned the Fed, which isn't the same thing as the US gov't, right?
- hidenotslide 9y ago
  I don't really want to go down the conspiracy theory rabbit hole of who does what at the Fed but it's main decision makers are government appointees, it was established by an act of Congress, and it remits its profits to the Treasury. Ginnie Mae is part of the government as well (also mortgages). Fannie/Freddie are GSE's but currently under directly government control since the financial crisis. I'm not sure how the accounting works, but they are somewhat autonomous and have their own balance sheets.
  - tanderson92 9y ago
    It's fascinating accounting-wise. Matt Levine has a good write-up here: https://www.bloomberg.com/view/articles/2016-08-08/fannie-and-freddie-will-be-profitable-after-their-next-bailouts-too https://www.bloomberg.com/view/articles/2016-08-08/fannie-an... The interaction of the accounting rules and the new tax plan was fascinating too because the value of their deferred tax asset changed: > “A reduction in corporate tax rates would require us to measure our net deferred tax asset using the new rate in the period in which the rate change is enacted, resulting in a one-time charge through the tax provision in the period the tax rate was changed, ...” More here: https://www.housingwire.com/articles/42130-trump-to-sign-tax-reform-into-law-that-will-trigger-fannie-freddie-treasury-draw https://www.housingwire.com/articles/42130-trump-to-sign-tax...