Posted on 10/21/2010 12:00:17 PM PDT by Red in Blue PA
And first thing they’ll do is give MILLIONS to liberal Democrat Politicians who support them.
Pay your taxes America - the ruling class needs the money. :)
Bwahney’s legacy.
That is what happened when Fannie was “spun out” as a “government sponsored enterprise” in the late 60’s: LBJ was getting Fannie off the Treasury’s balance sheet.
Because Congress thought that Fannie needed “competition,” they created a new GSE, Freddie Mac, to compete with Fannie Mae, also as a GSE.
There is no way to spin these back out as a GSE or private or semi-private business now. They’d fail in the first week without the explicit backing of the US Treasury, and mortgage rates would quickly climb and choke off home financing in the US.
What we’re left with now is a situation that many were warning of throughout the late 90’s: that the AAA rating on Fannie/Freddie MBS was due to the “implicit guarantee by the US Treasury.” Well, when the Chinese called the US on this guarantee, Hank Paulson crapped a brick and made the guarantee explicit on the $300+ billion of MBS paper that the BOC held at that time. (the BOC later sold their paper).
Shortly thereafter, Freddie/Fanne got pulled into the government.
What should and needs to happen now is pretty simple: pick the best one of the two, put the other one out of our misery and end the duplication of efforts. Next, auditors need to start crawling through all the paperwork they have and initiate put-back proceedings onto the banks that sold Fannie/Freddie compromised or fraudulent paper. This is the fastest way to minimize the cost to the US taxpayer.
Oh, and one more thing: When the put-backs cause one or more of the “Too Big To Fail” banks to, you know, fail? Don’t bail them out. Let them go down in flames.
From Wikipedia, found at http://en.wikipedia.org/wiki/Andrew_Cuomo - Early life, education and career Andrew Cuomo was born in Queens, New York, the elder son of Mario Cuomo, the first Italian American to be elected Governor of New York and his Sephardic Jewish wife Matilda Raffa, daughter of Charlie Raffa (See Jewish Genealogy in Sicily at http://www.italian-family-history.com/jewish/_Sicilia.html). He is the older brother of ABC News journalist Chris Cuomo.
During the administration of former New York City Mayor David Dinkins, Cuomo served as Chairman of the New York City Homeless Commission, which was charged with developing policies to address the homeless issue in the city and to develop more housing options.
Cuomo, as HUD Secretary holding a press conference with then Treasury Secretary Larry SummersAndrew Cuomo was appointed to the Department of Housing and Urban Development as Assistant Secretary in 1993, as a member of President Bill Clinton’s administration. After the departure of Secretary Henry Cisneros at the end of Clinton’s first term under the cloud of an FBI investigation, Cuomo succeeded him as HUD Secretary in January 1997 after being unanimously confirmed by the Senate, serving until 2001 when Clinton’s administration ended. In 1998, Cuomo’s lauded work in the department garnered speculation that he could challenge Senator Al D’Amato but he ultimately declined, saying that he had more things to revamp in the Department. Instead, Congressman Charles Schumer won the Democratic nomination and ultimately defeated D’Amato. Cuomo was also mentioned as a candidate for U.S. Senator in 2000 but deferred to First Lady Hillary Rodham Clinton.
During Cuomo’s tenure as HUD Secretary, he called for an increase in home ownership.[4] He also pushed government-sponsored lenders Fannie Mae and Freddie Mac to buy more home loans issued to poor homeowners, in an attempt to end discrimination against minorities.[5] Some believe that this helped lead to the current subprime mortgage crisis.[4][5][6] Edward J. Pinto, former chief credit officer at Fannie Mae, said “they should have known the risks were large. Cuomo was pushing mortgage bankers to make loans and basically saying you have to offer a loan to everybody.”[4] But others disagree with the assesment that Cuomo caused the crisis. Dean Baker, co-director of the Center for Economic and Policy Research, said Cuomo “was a contributor in terms of him being a cheerleader, but I don’t think we can pin too much blame on him.”[4]
In other words, apparently this man Andrew Cuomo caused the entire financial crisis/great depression this country is facing now.
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