Barack and Michelle are just taking care of "their people."
Posted on 06/23/2010 3:14:43 AM PDT by Scanian
Contrary to what the Obama administration would have you believe, the biggest recipients of taxpayer funds during the financial crisis have not been Wall Street banks -- but the toxic twins, mortgage behemoths Fannie Mae and Freddie Mac.
And the House and Senate are now finalizing legislation to reform the financial sector -- yet the bill will leave the biggest bailout recipients untouched. In fact, Fannie and Freddie are guaranteed to continue siphoning money from American taxpayers.
That's right: The Democratic majority in Congress has made no attempt to reform these two entities, which have already cost us $145 billion. Moreover, Congress and the administration have been hiding the true cost of Fannie Mae and Freddie Mac from the American public -- while also using these off-the-books institutions to funnel money into special loan-modification programs that are also unaccounted for in the federal budget.
In 2008, during the height of the financial crisis, the government took ownership of Fannie Mae and Freddie Mac, injecting cash to keep them afloat. Since the federal government now owns, manages and supplies the capital for Fannie Mae and Freddie Mac, the nonpartisan Congressional Budget Office concluded last year that their cost to the American people should be accounted for in the federal budget. Unfortunately, President Obama's Office of Management and Budget ruled differently, preferring not to account for the risk these entities pose.
(Excerpt) Read more at nypost.com ...
Fannie and Freddie - the Soviet Housing Authority.
The latest Senate finance reform GUARANTEES the existence of Fannie and Freddie.
Barack and Michelle are just taking care of "their people."
FNM and FRE are surrogates for the wall street banks that caused the bubble and collapse ... they are absorbing the losses those banks should be taking ,, the author is wrong ,, wall street is the recipient of this largess via proxy.
Scott Garrett is a stooge for Wall Street. There are no innocents in this mess.
Although Congress, Obama, Bush, Clinton ALL pushed homeownership and “affordable” housing to the brink for political reasons.
You will delighted to know that the “subprime loans” that were the genesis of the whole debacle are now being made - by the billions - in FHA. They have just cut out the middlemen.
They’re just kicking it down the road ... but now it’s a little girly kick ... 3.5% down in a market with prices falling a minimum of 10% a year and everybody worried about any bump to their situation killing their ability to pay... Needless to say this won’t help.
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