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“.....since the inception of bailout nation, we have seen the federal government own or control 30% of private business profits.”

Mark my words folks...anybody here writing a monthly mortgage check that does NOT bounce....will sooner or later effectively be writing it to the Federal Treasury. That is the measure of how broke the Feds really are...

My husband and I were transferred to another state this year, and we had to take out a mortgage on the home in the new state. We were limited to 3 lenders by the company’s relocation services.

Within 10 DAYS of signing papers, we were informed by mail that the maintenance of our mortgage had been transferred to Fannie Mae!

Most of the home mortgage industry has now been effectively nationalized by the Federal government. This was probably necessary to do this year because America totally screwed up the mortgage industry for a variety of reasons. But the question now is where do we go from here? Will the Fed ever be able to get out of the mortgage business and get all those MBS off its balance sheet? I suspect that the Democrats and some RINOs will want Fannie Mae and Freddie Mac to continue buying mortgages given to marginally qualified borrowers, which will have a continued high default rate. The Fed would have to buy those mortgages because no private investors want to buy them. This means Fannie, Freddie, and the Fed would have to make higher profits off high quality mortgages to subsidize all the losses they take on the low quality borrowers. The end result is that people with high credit scores will end up paying higher interest rates than they should have to pay, to subsidize people with low credit scores so they can get mortgages they couldn't otherwise get and lower interest rates than they would get otherwise through Fannie and Freddie.

Welcome to the Democrat Socialist machine. It's Chicago politics in the nationalized mortgage industry. Subsidized mortgages will be handed out to keep democrat home buyers happy and maintain employment in the home building industry, and people who pay their mortgages on time every month will effectively be taxed heavily to subsidize the nationalized mortgage industry.

This is where I think this whole thing is going and it's going to become a major political issue in the years ahead as the liberals and RINOs try to keep the government in control of the mortgage industry and keep a lot of MBS on the Fed's balance sheet. It will be fascinating to see how Bernanke and the Fed governors react to the push from Congress to keep them buying mortgages backed securities. How much will they push back and push to maintain their independence from political forces? How will congress react to resistance by the Fed? Chavez will be watching this closely for clues on how to subvert American democracy.