printIf there’s one thing you need to know about President Barack Obama so-called financial-regulatory overhaul it is that, predictably, it didn’t touch the Freddie Mac and Fannie Mae money pits. Freddie, a government owned mortgage-finance company, has cost taxpayers (or China) $63.1 billion, and it has “asked the U.S. Treasury to provide [it with an additional] $1.8 billion infusion.” “Fannie last week asked the government for $1.5 billion, bringing the total tab for the companies’ rescue to $148 billion.”
You will recalled that in May of this year, the thieves in charge of the Treasury handed over another $8.4 billion to “Fannie Mae and sister company Freddie Mac.” And that “The Obama administration had pledged to cover unlimited losses through 2012 for Freddie and Fannie, lifting an earlier cap of $400 billion.”
WSJ:
The U.S. took over Freddie and Fannie two years ago through a legal process known as conservatorship and has pledged to inject unlimited sums of aid over the next three years to keep the companies afloat.
Freddie is being propped up by taxpayers (read China) until eternity or until the US collapses, whichever comes first. This, despite the fact that these mortgage sinkholes should have long since been liquidated.
As a bankrupt and bankrupting state-run entity, Freddie and Fannie are responsive to political masters, not to markets. This would explain why these entities are hoarding houses when they should be getting rid of them at fire-sale prices.
As political players, they are expected to avoid “putting further pressure on home values.” “The inventory of homes owned by the companies has doubled over the past year, to a combined 191,000, up from 97,000 a year ago.”
Freddie and Fannie forever.
Any Justice Department, any congressional committe or for that matter any obscure chapter of the League of Women Voters worth the powder and shot to blow their hats off would have a field day investigating Fannie and Freddie. Not only are their activities highly questionable but their apologists in the upper reaches of government are highly questionable. I have to feel that if I were so obviously clumsy in purloining public funds by the wheel barrow full I would be hauled off to the federal bastille in a tumbrill. Our government is so crooked that nobody is shouting to high heavens about this obviously corrupt set up. What a revolting development.