Skip to comments.Uncle Sam Is The Real Bank Of America
Posted on 12/09/2011 9:28:33 AM PST by Slyscribe
The government has pulled roughly even with the private sector as a source of home mortgages and consumer credit, with both financing $6.4 trillion in outstanding loans last quarter, Federal Reserve data show.
This represents a dramatic reversal from 2006, when private-sector financing supplied nearly $2 in outstanding home mortgages and consumer credit for every $1 of government-financed loans.
(Excerpt) Read more at blogs.investors.com ...
” - - - Financing through government-sponsored Fannie Mae and Freddie Mac, as well as Ginnie Mae, which finances Federal Housing Administration mortgages, became the only game in town. - - - “
In 2008 Sheriff of Nottingham “Walk-the-Plank-Hank” Paulson used his Socialist TARP to cut the brass ones off of our Fortress Banks in order to hide the fact that the Federal Housing Authority (damn! that sounds like a Socialist Agency), Freddie Mac, and Fannie Mae had all gone bankrupt due to their own regulations.
Hank’s reasoning was straight out of Socialism 101: Big Banks were “to big to fail.”
Now that all of the TARPED Banks are bigger it proves that TARP was a failure.
Also the bankrupt FHA, Freddie, Fannie, and Ginnie Mae not only are bigger, but soon will be “the only game in town,” otherwise known as a monopoly.
It stands to reason then that a monopoly is the ultimate entity that is “to big to fail.”
Since applying TARP makes entities bigger, perhaps the reverse application would make things smaller. ( It even sounds better.)
Yes, you guessed it, put FHA, Ginnie, Freddie and Fannie on their PRAT!