RSSHow Are Freddie And Fannie Doing Again Mr. Frank?
J.J. Jackson | January 1, 2010
Rep. Barney Frank, who wouldn’t know reality if it bit him in his posterior, although he may enjoy that, is one of the best and most shining examples of why liberals should never be elected to government. Remember back in 2008, when he proudly declared of Fannie Mae and Freddie Mac (two unconstitutional arms of the federal govenrment) that, “I think this is a case where Freddie Mac and Fannie Mae are fundamentally sound,” even as people all from all directions were warning about their tactics of promoting and then buying up toxic loans to under qualified Americans who would have trouble paying the mortgage on a Big Mac?
But Barney Frank did not care because he was carrying the torch for liberalism; finding ways to spend other poeple’s money to buy votes for himself and others in Congress by giving people things that they had no qualification to own. To this day Rep. Frank still avoids questions about his utter incompetence on this issue. Well, Pete Wilson, who once worked at the Treasury, has put a price tag on how much tax payers are on the hook for and like it or not, these two institutions are hemoraging money.
Dec. 31 (Bloomberg) — Taxpayer losses from supporting Fannie Mae and Freddie Mac will top $400 billion, according to Peter Wallison, a former general counsel at the Treasury who is now a fellow at the American Enterprise Institute.
“The situation is they are losing gobs of money, up to $400 billion in mortgages,” Wallison said in a Bloomberg Television interview. The Treasury Department recognized last week that losses will be more than $400 billion when it raised its limit on federal support for the two government-sponsored enterprises, he said.
The U.S. seized the two mortgage financiers in 2008 as the government struggled to prevent a meltdown of the financial system. The debt of Fannie Mae, Freddie Mac and the Federal Home Loan Banks grew an average of $184 billion annually from 1998 to 2008, helping fuel a bubble that drove home prices up by 107 percent between 2000 and mid-2006, according to the S&P/Case- Shiller home-price index.
Well to be perfectly honest here a correction is in order. Freddie and Fannie were already wings of the Federal Government that did the bidding of politicians and bureaucrats. So to say that the U.S. government “seized” the two in 2008 is quite misleading. What they did was take even more control over them than they had before.
Everywhere we turn the concepts of liberalism are failing. But the liberals cannot bring themselves to admit to it. So we will get more and more left wing policies that will in turn fail in the future and liberals will be stunned as to why. And like always, we, the tax payers, will be left holding the bag.
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