Fannie and Freddie's Rich Uncle

Here we go again! It seems like just yesterday the government ran to the rescue when Bear Stearns was on the verge of bankruptcy ; threatening to unravel the whole mortgage loan industry after learning that the Consolidated Debt Obligations (CDOs) banks worldwide were holding weren't worth the paper they were printed on.

Now investor confidence in the two largest holders of mortgage obligations in the United States, the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are at historic lows as their stock prices have tanked quicker than Enron pension funds. Put simply, these two "Privately Traded" companies are about to get bailed out by the government with our tax dollars so that the rest of the world will still look at them as real. Those Republicans hate big government but love big bailouts. And the help comes fast too, unless you are needy people like the New Orleans Katrina crowd.

This is what our Republican led government has brought us. As Phil Gramm said this week, yeah McCain's chief financial advisor, Foreclosure Phil says it's all in our head! Tell you what Phil, I agree. It is all in my head, alright! It's in my head that we are looking at a weak dollar, weary jobseekers, oil prices rising quicker than a hooker's hemline , and even her dress is getting tattered. It's mental, and I'm so glad that we have George Bush to figure out how to get out of this crisis. He's already proven that he can get us out of two wars at one time just declare Mission Accomplished in one and never mention Osama bin Laden and the Taliban again in the other! Thanks George! And do me a favor and pass on your wisdom to your buddy John McCain so we can place our trust in him too! Maybe he will make our Rich Uncle buy us some candy and soda pop!

Comments

[Paul Peete - Huffpost Blogger]

Thanks Rule of Law, I do agree with you that the FED is not a party problem per se, the behavior of the FED has had positive or negative impact on the financial environment based on who is in charge at any given time. The change in Fannie Mae and the inception of Freddie Mac during Republican administration of the Government; or the (later lamented in his autobiography) behavior of Alan Greenspan agreeing to the acceptability of trickle down economics and tax breaks for the rich without spending reduction offsets both occured under Republicans.

The Republicans hate big government and love big bailouts; the Keating 5 scandal; the Reagan deficits started us on the road to endless deficits reversed during the Clinton administration.

Financing wars on foreign debt allowing the wealthy to park resources offshore in tax shelters;jobs lost to foreign countries so investors will increase companies' capitalization further concentrating wealth into a smaller percentage of the population. I've been awake. The gold standard was removed during the Nixon administration and we are all Kensians. It's our government and I want to reclaim the part that is answerable and accountable to the people.

Phil Gramm's deregulation allowed private enterprise to escape accountability; use of executive privelege to shield using private corporations to set policies benefiting the few. Putting Democrats in charge of the reigns may get us headed in the right direction. The monster is real ugly and wears elephant's tusks that have mauled us over and over again.

[WIpatriot]

Agree, Paul. But the Pubbies NEED government (their selected people in key positions) to FACILITATE their endless looting of our economy. When it's all gone, THEN they want to drown it, so that nothing will stand in their way of returning us to the robber-baron days of yore.

[Rule Of Law]

The Central Banking Debt System--the FED, is not a party problem. It has existed through Democrat and Republicans alike. It is a non-partisan, equal opportunity predator swimming relentlessly through the American Economy.

Pliticizing this systemic problem only distracts the People from the real issue. Both parties have sold out to the Banks and their notion of fractional reserve monetary policy, where money is created from nothing, but lent out at interest paid in real dollars, and generates wealth for the banks who put up not one cent of their own money.

The entire system is built on debt, not assets. We don't control our own currency, not since 1913, and don't control our own destiny. To act as though the Democrats will be able to stuff that genie back into its bottle is lunacy at best, and, at its worst, continues to confuse the citizenry by refusing to acknowledge the rot at the core of the system.

Wake up. Of course there will be bail outs. THEY CREATE MORE DEBT. The monster feeds on debt, is paid handsomely with OUR money, printed by the Treasury, sold to the FED and lent back to us at interest so our representatives can spend it to prop up the very companies that created the mess in the first place. With snake oil, at least you've got to put something in a bottle to bilk the rubes. With this Banking con game, they don't even need to buy the bottles.

[dadw5boys]

THE FED HAS A RESPONSIBILITY TO MAKE SURE RULES ARE IN PLACE TO PROTECT THE U.S. ECOMONY.

NO MATTER IF SOME REPOUBLICAN MAJORITY STRIPS AWAY REGULATION THE FED IS SUPPOSE TO HOLD THE LINE AND ON HOW THINGS ARE DONE!!!!!!

ILLEGAL LOANS TO BANKING OFFICALS WHO BUY 10 OR 20 HOMES THEN TAKE A 2ND ON THOSE HOME TO REMODEL THEN WLAK AWAY WITH THE MONEY FOR THE 2ND AND LET THEM FORCLOSE!!!!!

[WIpatriot]

Nice, Rule. Very nice.