Fannie, Freddie could send $179.2 billion to taxpayers: White House (exact headline)

http://news.yahoo.com/fannie-freddie-could-send-179-2-billion-taxpayers-175239683--sector.html

So, what should be done with these enormous profits now that taxpayers have been repaid? Should we keep them to pay down the deficit?

Should they be returned to the stockholders? Senior creditors? Should they be broken up and disbanded?

Many people want to know and there is almost no precedent on what to do with a GSE that is leaving conservatorship.

“Enormous profits”??? $180 billion is barely a drop in the bucket, compared against an outstanding debt of $12.5 trillion, or approximately 0.005 cents per American citizen. And that’s over a time scale of ten years.

Still, a penny saved is a penny earned, I suppose.

I think some of your math is wrong. Still, a billion here, a billion there, pretty soon it adds up to real money. But if we socialized the risk, we should socialize the profit, and this money is better measured against the deficit, not the debt in any case.

Yes, enormous profits.

You are comparing profit against debt outstanding and forgetting the millions of monthly mortgage payments collected to offset such.

To complete your train (or trickle) of thought you would need to compare debt to assets. Those assets have a 30 yr promissory note attached.

180 billion divided by the population of the USA is what now?

$600. So - about $5/month for each person in the US, for 10 years. Call it “Uncle Sam’s monthly latte”.

Hopefully enough to fund basic math education as it is so clearly and desperately needed.

What would it be worth if it were sold in an IPO? Lets get our money and RUN!