Posted on 12/01/2016 6:33:52 AM PST by GonzoII
===========================================
Here's why.
EXCERPT---FOURTEEN TRILLION DOLLARS Behind The Real Size of the Obama Bailout; A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street
SOURCE motherjones.com --- Mon Dec. 21, 2009 12:23 PM PST
The price tag for the Wall Street bailout is popularly put at $700 billion—---the actual size of TARP--the Troubled Assets Relief Program.
But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside untraceable money to bail out financial firms and inject money into the markets.
PAUSE TO REFLECT First-term Obama had tight control of the US Treasury; Obama calculatedly placed his then-COS Rahm Emanuel in a dual role.......in the WH and at Treasury. Obama had a stranglehold on Treasury via COS Rahm Emanuel's dual role.
To get a sense of the size of the real $14 trillion bailout, see MJ chart at web site. A guide to the pieces of the puzzle includes massive untraceable Treasury Department bailout programs.
Money Market Mutual Fund: In September 2008, the Treasury controlled by Obama/Emanuel announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury controlled by Obama/Emanuel made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid.
Government-sponsored enterprise (GSE) stock purchase: The Treasury controlled by Obama/Emanuel bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets."
GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury controlled by Obama/Emanuel may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion ---SNIP---.
LONG READ---go to web site to read more and checkout the shocking financial charts.
SOURCE http://motherjones.com/politics/2009/12/behind-real-size-bailout
It is the lenders who want Federal guarantees.
Lenders willing to take actual risks are as rare as honest Hillary staffers.
Why can’t Freddie and Fannie just be broken up and the loans sold to private investors? Sure, plenty may lose their homes, but they should have thought about that before buying one for less than the price of a Latte.
No Bailouts! Let them die on the vine.
Once Fannie and Freddie buy the mortgages, the lenders don’t care. They already got their money back. It is the “investors” that buy the bundled securities from Fannie and Freddie that enjoy the guarantees.
the US government (the tax payers) have no business funding any private ventures, period. All that does is supports crony capitalism and scams the tax payers so the connected class can legally steal billions. The $800 billion TARP scam comes to mind.
Freddie and Fannie should have been broken up and sold off long ago.
Well, they'll have to man up.
Aren’t they like the post office? In need of bailouts (Tax Payer Money).
You didn't read the article, did you? This "reform" does not remove the federal guarantees underwriting the securities; it only removes the federal government control over the two institutions. So privatize the running of the organization but keep all the risk exposure for the taxpayers. Crony capitalism at its worst.
Let me ask, why would anyone want to divest themselves of such wondrous institutions?
FDR had nothing but the nation’s best interests in mind when he had Fannie Mae created in the 1930’s (along with dozens and dozens of other unconstitutional entities), and Lyndon Johnson wanted nothing but the best when he had Freddie Mac created in the 1960’s along with that wonderful “Great Society” idea of his.
/s, if you missed it.
ROFL
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.