Osama Bin Laden Is Dead

The biggest headline I've seen on WSJ yet... 

OSAMA BIN LADEN IS DEAD, PRESIDENT OBAMA SAYS

Obama: 1, Trump: 0

"In case there are any lingering questions tonight (regarding the birth certificate), I'm prepared to go a step further tonight," President Obama said. "For the first time, I am releasing my official birth video." Cue The Lion King's opening song.

The Endless Cycle of Dividend Featuring Fannie Mae and Freddie Mac

Anyone who followed the financial meltdown since 2007 must have heard of Fannie Mae and Freddie Mac. Did you know Fannie Mae's formal name is the Federal National Mortgage Association (FNMA) and Freddie Mac is The Federal Home Loan Mortgage Corporation (FHLMC)? As the titles suggest, they are both affiliated with the government as a government-sponsored enterprise.

This is why I was not surprised when Congress decided to bailout Fannie and Freddie. Of course, this act of kindness was performed with an exorbitant dividend clause. Whenever Fannie Mae and Freddie Mac start to recover, they are required to pay a 10% dividend on their preferred stocks. As of October 2010, The U.S. government received about $150 billion in preferred stocks to save the two firms. This means that the dividend payout to the U.S. government is $15 billion a year.

However, here is where the ludicrousness lies. As a result, Fannie Mae and Freddie Mac are caught in a vicious cycle on dividends:

"In the last two quarters, the firms (Fannie Mae and Freddie Mac) have paid $7.5 billion in total dividend payments, while receiving injections of $5.7 billion to help keep them in business. The dividends could force Fannie Mae and Freddie Mac to keep asking the Treasury Department for more money even after the companies get back into the black..."

Even though there has been protests over the bailout's current structure, the current Obama administration refuses to loosen up on its "cash cow" anytime soon, even if it's for the greater good. Go figure.