DC-based Fannie Mae reduced its massive loss in 2009 of $73.0 bil by $56.1 bil, or by 77%, in the most recent two years, to a much lower massive loss of $16.9 bil in 2011…..still not acceptable to US taxpayers funding Fannie’s losses, but still quite a bit of progress.
If only Ed Demarco, the head of the government agency overseeing Fannie, would be open minded and start listening to wise recommendations of the Obama Administration and the Fed. I am pretty certain that not only would Fannie Mae and Freddie Mac already be cleaned up, but also the devastating housing crisis would be substantially improved, the US Deficit significantly reduced, and US unemployment and US underemployment both markedly reduced.
This wise dynamic duo of the Obama Administration and the Fed have miraculously pretty much helped to clean up, with the sole exception of Fannie and Freddie, all of the financial mess caused by the 2008 financial meltdown, where back then, the pure economic numbers and accounting operating numbers were both shouting out that the US was clearly headed for a deep, lengthy depression.
My gosh, these two even helped clean up AIG, when in 2008, all economic pundits, including even me, were certain that there was no way AIG could possibly be resurrected from the dead. And instead of this clean up costing the US taxpayers a ton of money, this wise clean up of AIG even resulted in an estimated $11 bil windfall profit to US taxpayers. Whoa!
The remaining three DC Corps, led by Danaher, had their Total Pretax Income in 2011 increase by a robust 18% over 2010, and by an even more robust 98% over 2009.
In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Asset Impairments, and Gains and Losses on both Debt Retirements and Asset Dispositions.
Below here is the Pretax Income (PTI) and Pretax Loss of these four DC Corps for each of the most recent three years.
| Obama | |||||
| Bump | |||||
| PTI(L) | PTI(L) | ||||
| 1 Year | 2 Year | ||||
| PTI(L) | PTI(L) | PTI(L) | % | % | |
| 2011 | 2010 | 2009 | Change | Change | |
| mils $s | mils $s | mils $s | |||
| Washington DC | |||||
| Fannie Mae | (16,945) | (14,100) | (73,007) | -20% | 77% |
| The Rest | |||||
| Danaher | 2,448 | 1,939 | 1,326 | 26% | 85% |
| Washington Post | 284 | 590 | 245 | -52% | 16% |
| Intelsat | (163) | (346) | (272) | 53% | 40% |
| Total 3 Rest | 2,569 | 2,183 | 1,299 | 18% | 98% |
