That Giant Sucking Sound

May 11, 2010

 

UPDATE BELOW adds insult to injury…

It’s the sound of Fannie Mae and Freddie Mac, those two mortgage underwriters which themselves are underwritten by We the People, slurping yet more money from your wallet.

Yes, just a few days after Freddie Mac came to the government and said, “Please sir, I want more,” sister Fannie Mae is now taking a page from Freddie’s book and doing the same. The good news is that while Freddie needed $10.6 billion, Fannie’s asking for a paltry $8.4 billion.

Why, in this day and age, that’s chump change. And we’re the chumps shelling out.

If the definition of insanity is doing the same thing over and over again and expecing a different result, it doesn’t take an Einstein to see that we are truly crazy if we do anything except say “no” to doing anything except start looking for the least damaging way to shut them down.

Fannie Mae is even telling us clearly that they are on an unsustainable path:

Credit-Related Expenses. We expect that our credit-related expenses will remain high in 2010, as we believe that the level of our nonperforming loans will remain elevated for a period of time…

Credit Losses. We expect that our single-family and multifamily credit losses will continue to increase
during 2010 as a result of anticipated continued high unemployment and overall economic weakness..

Uncertainty Regarding our Long-Term Financial Sustainability and Future Status. We expect that the actions we take to stabilize the housing market and minimize our credit losses will continue to have, in the short term at least, a material adverse effect on our results of operations and financial condition, including our net worth…

Given our expectations regarding future losses and draws from Treasury, we do not expect to earn profits in excess of our annual dividend obligation to Treasury for the indefinite future. As a result of these factors, there is significant uncertainty as to our longterm financial sustainability. [Emphasis mine]

Clearly, I’m not an economist, but it seems to me that any company which has to come begging to the public for money to sustain its operations again and again (yes, I’m looking at you, too, Amtrak…) is not only not too big to fail, but should be allowed to fail immediately in order to get the burden of supporting its useless carcase off the back of the taxpayers.

So, requiescat in pace, Fannie and Freddie. Don’t let the door hit you on the way out; don’t go away mad, just go away; make like a tree and leave; here’s your hat, what’s your hurry? 

In other words, buh-bye. And the sooner the better.

UPDATE: Begging for money from us, but both Fannie and Freddie donated at least $200,000 each to the extreme radical group, La Raza. According to La Raza annual reports, Freddie Mac and Fannie Mae donated at least $200,000  in 2008, 2007, and 2006. In 2005 and 2004, Fannie and Freddie both made donations to La Raza, but no amount was given. In 2003, 2002, and 2000, only Fannie Mae is listed as a donor.

So they’re able to donate millions to racist lobbyist organizations and still cry at our doors for money. As President Obama said recently, “Adios, amigos!”

Stoutcat

H/T: Reason, @irishspy


Barney Frank Wreaks Havoc

July 1, 2009

 

Today’s must-read article comes from Investor’s Business Daily, via Bernie Goldberg on Twitter (thanks, Bernie!).

How can you go wrong with an article recommended by Bernie, which quotes Thomas Sowell extensively, and calls out Barney Frank, ACORN, and the mainstream media for their various sins? You simply can’t. Read on.

Media: They laugh at his jokes. They say he’s the smartest guy in Congress. And 90% of them agree with him politically. Small wonder the havoc Barney Frank wreaks on the economy gets so little attention.

How we got into this, the worst economic fix since the Great Depression, is the most monumental question of our time. Yet despite the information that we and other non-mainstream media have put out, people still haven’t connected the dots.

This was driven home again last week, when it was disclosed that Frank, who is chairman of the House Financial Services Committee, wants standards for mortgages on new condominiums to be relaxed.

Yet back in 2003, Sowell notes, Frank was arguing that the federal government had “probably done too little rather than too much to push (Fannie and Freddie) to meet the goals of affordable housing.”

Sowell quoting Frank: “I would like Fannie and Freddie more deeply into helping low-income housing and possibly moving into something that is more explicitly a subsidy. I want to roll the dice a little bit more in this situation.”

Now Frank is back at the craps table, pushing for another relaxation of Fannie and Freddie loan standards. Yet the media, which seem oblivious to the history of the housing meltdown, apparently see no connection.

Until they make the connection, the public at large will never realize it was Big Government, with its horribly conceived and executed programs, that created the mess in which we find ourselves. And it’ll be the public at large that will continue to suffer the devastation of future programs — whether they target housing, banking, energy or health care.

You’ll definitely want to read the whole thing.

Stoutcat


That’s Gonna Leave a Mark!

September 29, 2008

 

If enough people view this video, it might clarify to the country just exactly who was supporting the corrupt practices at Fannie Mae and Freddie Mac, and who was working to end–or at least reign in–those corrupt practices.

Why, oh why will we never see any of this covered in any part of the mainstream media? Okay, it’s a rhetorical question. I know why. And so do you.

(h/t VodkaPundit)

Stoutcat


RSVP

September 26, 2008

 

Ed Morrissey at HotAir noticed that the indictments are flying. It seems a federal grand jury would like to speak with some of the friends of Angelo Mozilo, the beleaguered CEO of Countrywide Mortgage, who got sweetheart deals on mortgages and loans–deals not available to the common folks.

Already public among these “friends of Angelo” are Senators Chris Dodd and Kent Conrad, Donna Shalala, Richard Holbrooke, Fannie Mae CEO Jim Johnson, and many others. We now discover that the woman many feel was behind the intelligence failures leading to the September 11, 2001 terrorist attacks, Jamie Gorelick, is also a good friend of Angelo Mozilo.

Of course, if she were still just a lowly Deputy Attorney General, she and Angelo might not have been so chummy. However, after her “Wall of separation” and 9/11 Commission “experience,” little Jamie came up in the world. Despite her seeming lack of economic experience, she was deemed fit to be named Vice Chairman of Fannie Mae. During her tenure there, she not only took in $26 million, but her company was embroiled in a multi-billion dollar accounting scandal, out of which Jamie got a bonus of nearly a million dollars. Here is a woman worthy of being a friend of Angelo, indeed.

And what a friend Angelo was! His “special friends” unit handled her $960,000 mortgage re-finance with kid gloves and, no doubt, low interest rates and fees. And little Jamie claims she was unaware of the preferential treatment. I’d like to think that a person bright enough to help head up Fannie Mae is bright enough to know when she’s getting a break on interest rates and fees. Is she stupid? Or is she lying? Neither choice is flattering to her, or to any of Angelo’s other special friends, who are already making the same claim.

I’m sure there are times when we all wish we had a “friend” like Angelo. On second thought, maybe not. I don’t like the kind of “invitations” his friends are currently receiving. And while having to choose between stupidity and perjury is less than appetizing to any of them, I hope they all choke on it.

Stoutcat