Showing posts with label Fannie Mae. Show all posts
Showing posts with label Fannie Mae. Show all posts

Monday, July 23, 2018

Government Sponsored Economic Crises


I was talking to a customer the other day and he brought up a subject that I suspected was happening, but don’t want to believe: We are in another housing bubble. 



I hope he’s wrong, but all the signs are there. We all remember the last one. Many businesses and families were destroyed because of that federal government created disaster. Why do I say that? Because that crisis couldn't have happened without government sponsored entities such as Fannie Mae and Freddie Mac and all the Clinton cronies who ran those two organizations.



As a student of history, I can’t help but notice that most economic calamities that befall our country have been induced by the federal government. For instance, let’s take the Panic of 1873. Jay Cooke became the richest man in the country due to his financial dealings with the federal government, that was until his empire crashed bringing about one of the worst depressions in American history. Here is an excerpt from Murray N. Rothbard’s, The Progressive Era:


The railroad financier with the closest ties to the Republican administration was the redoubtable banker, Jay Cooke, head of Jay Cooke & Co. A small Philadelphia financier at the outset of the Civil War, Cooke had the vision to found his banking house and to wangle from the federal government a monopoly on underwriting the massive bond issues floated during the war. To sell them to the gullible public, Cooke launched the first modern propaganda campaign for selling the bonds, employing thousands of subagents and such slogans for the credulous as “A national debt a national blessing.”


Cooke obtained the highly lucrative monopoly underwriting concessions from Washington through his influence on Secretary of Treasury Salmon P. Chase. Cooke’s brother, Henry, was a long-time aide of Chase, from the latter’s tenure of Governor of Ohio,. Henry then followed Chase to WAshington. After extensive wining and dining of Chase, and after demonstrating his propaganda methods in selling government bonds, Jay Cooke won the coveted concession that was to make him one of the richest men in America and his new Jay Cooke & Co. by far the leading investment bank. Cooke became widely known as “The Tycoon,” and the phrase “as rich as Jay Cooke” became a popular saying.


Image result for mr. speaker james grant


One of the casualties of the Panic of 1873 was the Freedman’s Bank. This institution’s clientele consisted of ex-slaves, mainly veterans of the Union army, who entrusted their life savings to a bank they thought was backed by the federal government. Boy were they wrong, especially after Henry Cooke got his mitts on it. Here is an excerpt from Mr. Speaker by James Grant:


In 1870, they amended the charter to permit a more liberal policy. No more was the management restricted to buying dull government bonds but could now roll the dice in real estate. Up, therefore, went a splendid new headquarters building for the bank on Pennsylvania Avenue. It was in this same year that the board fell under the spell of Henry D. Cooke brother of the era’s most bedazzling financier, Jay Cooke. Under Cooke’s leadership, the Freedman’s Bank finance committee took to calling the reserve fund “idle money.” Why bother with a rainy-day fund when the sun shone bright?


What extent Henry Cooke played into the demise of this institution is debatable. The Freedman’s Bank was rife with mismanagement and outright fraud; it wouldn’t have survived either way. But the underlying belief was this bank was guaranteed by the federal government and many a petition was filed decades after and all for naught. The federal government paid not one penny to a depositor.


One of the biggest shoes yet to drop is our national debt. When this federal government behemoth befalls our country, it will put all other depressions to shame. And this couldn’t have happened without the Federal Reserve (another government sponsored entity) and the greenback. Here is another excerpt from Mr. Speaker! By James Grant:


The Greenback furor is calculated to mystify most patrons of a 21st century automatic teller machine, for whom paper money is the only money they know. Not since 1971 has the dollar been remotely backed by gold, and not since 1933 has an American citizen been able to exchange paper for gold, or gold for paper, at a fixed, statutory rate. From the millennial vantage point, therefore, the paper dollar is the modern contrivance, the gold dollar the anachronism. Not so, however, in the late 1870’s. At the time, gold was the money of the future, as it had been in the past. As Reed was finishing his first congressional term and beginning his second, the gold standard was being institutionalized in Europe. Silver, now much the cheaper of the two precious metals, was the money of Mexico, China, India and other such poor and forlorn lands. Paper, held the enemies of Solon Chase, was the money of communism and anarchy.


Image result for bernie sanders and alexandria


Without fiat money, communists like Bernie Sanders and his acolytes wouldn’t have a platform to stand on. And when this whole house of cards falls around us the anarchists will have their day.


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Monday, July 24, 2017

Federal Government Pimp Ball of 2017



Welcome to the Federal Government Pimp Ball of 2017!  All you taxpaying bitches get yo asses in back of of line and let your pimp daddies through.  That’s right.  No one wants to hear your black eyed, pathetic wailing and moaning about waste, fraud and cronyism.  As Bill Clinton said, “You might want to put some ice on that.”   Now shut your mouths and let your mac daddies take their rightful places in the front of the bus.


Speaking of mac daddy!  Here comes Freddie Mac and Fannie Mae!  These two so-called GSO’s are players through and through.  How can anyone forget how these two rolled the American people in one of the biggest scams in world history.  Not only did they create a housing bubble that crashed and burned; they ended up owning or guaranteeing over 60% of all mortgages in the United States..  Now that’s a player!


But these two pimp masters aren’t through.  Now they’re financing single-family rental homes to big Wall Street financial firms and smaller, yet politically connected, businesses that specialize in landlord properties.

So all you taxpaying bitches had better get out there and make that money because your mac daddy government needs to sugar it’s teats.





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Sunday, June 26, 2016

Hank Paulson Slithers into Hillary Clinton Camp



What’s that slimy, slithering sound I here?  Why it’s former Treasury secretary and Goldman Sachs CEO, Hank Paulson crawling out under a rock and into Hillary Clinton’s camp!  Why shouldn’t we be surprised by that?  After all, it was he and his band of thieves that raided the taxpayer coffers during the financial turmoil in 2008.


How come this man and his mobster friends weren’t convicted on RICO charges?  Paulson should be someone’s bitch in a jail cell.  That’s because people like Hank Paulson don’t go to jail.  They’re the financiers of other criminals like the Clintons, Obamas and other scoundrels who are in charge of our justice system.  They are the cronies in our so-called capitalist system.  They profit off of our losses.


Here is the reason Mr. Hank Paulson endorsed Hillary Rodham Clinton:


When it comes to the presidency, I will not vote for Donald Trump. I will not cast a write-in vote. I’ll be voting for Hillary Clinton, with the hope that she can bring Americans together to do the things necessary to strengthen our economy, our environment and our place in the world.

Really?  She is one of the most polarizing people in this country and he believes she will unite us?  What a fool!  Hillary may strengthen Paulson’s and his buddies’ economic situation, but she won’t for the American people.  He continues:


We need to welcome rather than shrink from trade and economic competition. Trump calls our current trade deals “disgusting, the absolute worst ever negotiated by any country in the world.” This is simply false. According to the Peterson Institute for International Economics, the average American household income is roughly $10,000 higher because of the postwar expansion of trade. Because of trade, we add jobs and foster innovation and competitiveness. That doesn’t mean that people aren’t losing jobs and suffering in certain industries. However, it is wrong to tell the American people that we can turn back the clock and win, with merely 4 percent of the world’s population, by walling ourselves off from the remaining 7 billion people and the markets they represent. Instead, we need to fix the programs that help U.S. industries and workers transition to new and better jobs. We need better training, new education programs and a more robust safety net. The policies Trump endorses would destroy, not save, U.S. jobs.


The majority of those 7 billion people live in a third-world shithole.  What do they provide besides cheap labor that connected fat cats like Hank Paulson can exploit?  How about providing conditions that would attract manufacturing to the United States such as deregulation and an abolishment of punitive taxes?  Has anybody thought about that?





Just to remind people of what a crook Hank Paulson and his cronies are, here is an excerpt from Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon.


In 2001, however, Fannie took its accounting chicanery to new heights, or lows, depending upon your perspective.  And it did it with the help of its favorite investment bank, Goldman Sachs.


Goldman had long had strong ties to Fannie Mae.  Stephen Friedman, chairman of Goldman Sachs from 1992 to 1994, had been director of Fannie Mae since 1996.  In 2001, Friedman sat on Fannie’s Compensation Committee and its Nominations and Corporate Governance Committee.  Both areas were seriously compromised by the me-first attitude at the top of Fannie Mae.


Indeed, while Friedman was on Fannie’s board, federal investigators said directors improperly allowed the company’s executives to set earnings targets they were sure to meet.  “As a direct result, senior management reaped ongoing and extensive financial rewards through accounting manipulation,” the investigators wrote the OFHEO report concluded.


In 1999, Goldman had returned the favor of a directorship by offering a seat on its prestigious board to Jim Johnson.  It was a classic example of the “I’ll –scratch-your-back, you-scratch-mine” mentality among corporate boards.  The year Johnson became director at Goldman, Henry M. Paulson Jr., the man who would oversee the taxpayer bailout of Fannie Mae as Treasury secretary in 2008 took the helm at the investment bank.


Because Goldman did not have a nomination committee at the time, Johnson’s appointment to its board was a decision made at the highest levels of the firm.  Johnson immediately received the plum board assignment of chairing the firm’s compensation committee.  This meant that Johnson, in addition to his other board duties, would be in charge of dispensing some of the richest payouts on Wall Street.


Crooks!  Every damn one of them and they are still walking the streets to this day!


Source:



Thursday, October 24, 2013

Bank of America Takes Fall for Fannie Mae and Freddie Mac




If Obamacare isn’t enough of a demonstration of the incompetence of the federal government, we have Fannie Mae and Freddie Mac stepping up to the plate once again.  These corrupt organizations have sued Bank of America for fraud and have won.  This is theater of the absurd.
 
Must we remind everyone that it was Democratic operatives who ran these government sponsored entities.  It was scoundrels like James Johnson who brokered deals with Countrywide that brought about this whole housing crisis.  Here is a quote from the book Reckless Endangerment that sums up the relationship between Fannie Mae and Countrywide:

It was no coincidence that Countrywide’s operations were so intertwined with Fannie Mae’s and so similar.  Both companies had the same goals to achieve and the same enemies to defeat.  And for years, Mozilo’s friendship with Johnson had given him a front-row seat for the Fannie Mae way – the deep political focus, the co-opting of regulators, the manipulation of public opinion, and extensive granting of to friends and potential foes.

It’s tragic enough that players like Angelo Mozilo and James Johnson, the two players who almost destroyed the U.S. economy, was able to walk away scot free, now Bank of America has to pay the price for Fannie Mae and Countrywide’s sins. And let’s not forget the accusations that the Federal Reserve and Treasury Department threatened then CEO Ken Lewis if he didn’t make the deal.

But hey, let’s have the government takeover our health care system.  What could possibly go wrong?





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Monday, July 29, 2013

Sen. Kay Hagan Wants to Replace Fannie and Freddie with Another Government Agency



When I read that Senator Kay Hagan wanted to rid the country of GSE’s Fannie Mae and Freddie Mac, I couldn’t believe it.  A Democrat wants to abolish a quasi-government agency?  This is practically unheard of.  Here is a quote from the Charlotte Business Journal:

“For too long, Congress has ignored our broken housing finance system,” Hagan said in a statement Tuesday. “It is time we come together, Democrats and Republicans, to resolve this problem. This bipartisan bill provides an important road map for strengthening our housing finance system and protecting taxpayers while ensuring access to affordable, long-term mortgages for consumers.

“I look forward to working with my colleagues to advance this bipartisan legislation that will put our housing finance system on a stable path.”

And

“Fannie Mae and Freddie Mac continue to dominate the housing market — guaranteeing nine out of every 10 mortgages made today,” Hagan's office says in a press release. “Despite this unsustainable situation, real reform to the housing finance has not happened since the financial crisis.”

Incredible!  Finally, Senator Kay Hagan has opened her eyes and sees the light.  But then came the caveat:

The bill would replace Fannie and Freddie with a new government agency, funded by the financial industry, that would offer insurance on approved home loans.

Currently, Fannie and Freddie are in government conservatorship after they faltered in the housing collapse of 2008. They have received more than $188 billion in taxpayer aid, which is being repaid from profits as the housing market rebounds.

So Senator Hagan wants to create another government agency that will end up being corrupted just like Fannie Mae and Freddie Mac.  Unbelievable!  Something must be in the D.C. water.


Wednesday, May 1, 2013

Rick Santelli Calls Out Mel Watt on FHFA Pick

Obama Picks Fannie and Freddie Apologist for Federal Housing Post


 
Well, what do you know?  My former congressman (he was gerrymandered out of my area) has been picked by King Obama to head the Federal Housing Finance Agency.  This is an unbelievable pick.  Rep. Mel Watts played a part in the worst financial bubble in world history.  He defended Fannie Mae and Freddie Mac when it was obvious for all to see that these GSE’s were out of control.  Yet, he along with the Black Congressional Caucus skewered anyone who stated otherwise.  The below video is a refresher course on the shameful tactics of the Democratic Party.
 



Is it possible for another bubble?  A senator from Tennessee has concerns:
“I could not be more disappointed in this nomination. This gives new meaning to the adage that the fox is guarding the hen house,” Sen. Bob Corker, R-Tenn., said in a statement fired off minutes after news broke of Watt’s selection and well before the official White House photo op. “The debate around his nomination will illuminate for all Americans why Fannie and Freddie failed so miserably.”

 I’ll say one thing in favor of Mel Watt.  At least Obama didn’t appoint Maxine Waters.



Wednesday, January 2, 2013

Study Proves Democrats Destroyed the Economy



Here’s a study you won’t find in the op-ed section of your local liberal rag.  You can be damn sure of that. 
 A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act--enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.

The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.

Again, let's review:

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

But what you will find are reports on how these financial institutions screwed over the “little guy.”  The Charlotte Observer reported a record amount of fines collected by the courts.  Most of it due to the federal government’s manufactured housing bubble.

The U.S. Attorney’s Office in Charlotte and the Western District of North Carolina obtained record collections – more than $5 billion – in civil and criminal actions in 2012.
The $5.05 billion was the fourth highest collection amount among the nation’s 94 U.S. Attorney’s Offices. Much of the money, federal prosecutors said, came from a $25 billion settlement with the nation’s five largest mortgage servicers, including Bank of America and Wells Fargo, to resolve allegations of abuse and fraud in mortgage loan servicing and foreclosures.

The $5 billion in collections represents a huge increase over the 2011 budget year, when the U.S. Attorney’s Office in Charlotte and the Western District of North Carolina collected more than $13.5 million in civil and criminal actions.

The vast majority of the 2012 money – about $5.04 billion – was collected in civil actions. More than $11.3 million was collected in criminal and civil forfeitures and more than $4.4 million was collected in criminal actions.
Nearly $6.4 million was paid to the federal court for distribution to victims of crimes, including individuals, companies and government agencies.

Could those government agencies include Fannie Mae and Freddie Mac?  Because the Democrats would have us believe they were the biggest victim of all.


 
http://www.examiner.com/article/new-study-confirms-economy-was-destroyed-by-democrat-policies

Monday, June 11, 2012

Americans Lose 40% of Their Wealth in Recession

What do you get, when you cross loose monetary policy from the Federal Reserve with government sanctioned success? A big ass bubble! And that’s exactly what happened to us in 2008. The cards came crashing down, and all the players responsible blamed everyone but themselves for this disaster. Here is a report from one of the instigators of our economic crisis, as reported by the Washington Post:

The recent recession wiped out nearly two decades of Americans’ wealth, according to government data released Monday, with ­middle-class families bearing the brunt of the decline.

The
Federal Reserve said the median net worth of families plunged by 39 percent in just three years, from $126,400 in 2007 to $77,300 in 2010. That puts Americans roughly on par with where they were in 1992.

The data represent one of the most detailed looks at how
the economic downturn altered the landscape of family finance. Over a span of three years, Americans watched progress that took almost a generation to accumulate evaporate. The promise of retirement built on the inevitable rise of the stock market proved illusory for most. Homeownership, once heralded as a pathway to wealth, became an albatross.

Americans are back to 1992 status? That’s weird. Wasn’t it in 1993, when Bill Clinton and the Democrats started their housing initiatives? Isn’t that around the time James Johnson of Fannie Mae fame began his schemes with that G.S.E.? Could this just be a coincidence?



Saturday, March 31, 2012

Obama's 2012 New England Fear Factor Tour

Obama’s 2008 Hope and Change Tour, has degenerated into the 2012 Fear Factor. The Anointed One is making the New England fund raising circuit – at taxpayer expense – denigrating Republicans and bastardizing history.

Raising campaign cash in Maine on Friday, March 30, Obama said Republicans want to return to economic policies that would let Wall Street play by its own set of rules and allow insurance companies to roll back health coverage.

"We won't win the race for new jobs and new businesses and middle-class security if we cling to this same old, worn-out, tired 'You're on your own' economics that the other side is peddling," Obama said.

"It was tried in the decades before the Great Depression. It didn't work then. It was tried in the last decade. It didn't work," he said. "You know, the idea you would keep on doing the same thing over and over again, even though it's been proven not to work. That's a sign of madness."


Madness is taking this man’s word as gospel, and we all know what he thinks about Christians. Anyone with a modicum of curiosity would cast aside the progressive’s rewriting of history, and question why the Great Depression lasted as long as did. And if you’re going to be honest with yourself, one must question the policies of FDR and the New Deal.

It’s the New Deal era program, Fannie Mae that brought about the housing bubble and economic crash that we are currently suffering under. Was it not President Clinton who instigated the subprime market? And wasn’t it the Democrats in Congress that belligerently bullied regulators who tried to warn the American people about the abuses of Fannie Mae and Freddie Mac?

Madness is ignoring history and trusting a self-serving politician whose policies are un-American.


Friday, December 16, 2011

S.E.C. Sues Ex-CEO's of Fannie Mae and Freddie Mac

Finally, after all these years the Securities and Exchange Commission is taking action against a handful of ex- CEO’s who have fostered a culture of corruption at the G.S.E.’s known as Fannie Mae and Freddie Mac. Unfortunately, there are some very conspicuous names amiss; most notably, the architect of this disaster, James Johnson and his crown prince, Franklin Raines.

There should also be investigations on all of the Democratic operatives who have profited off of this culture of corruption, particularly those who served on the board of directors: Jamie Gorelick and Rahm Emanuel come to mind. And let’s not forget the leeches like Valerie Jarrett, who profited handsomely from insider information.

But instead, it’s the minnows who are being sued:

Daniel Mudd, the former chief executive officer of Fannie Mae, and Richard Syron, ex-CEO of Freddie Mac, were sued by the U.S. Securities and Exchange Commission for understating by hundreds of billions of dollars the subprime loans held by the firms.

The lawsuits filed today in Manhattan federal court were followed by an SEC statement that it had entered into “non-prosecution agreements” with each company. Fannie Mae, the government-sponsored enterprise which issues almost half of all mortgage-backed securities, and Freddie Mac, the McLean, Virginia-based mortgage-finance company, had “agreed to accept responsibility” for their conduct, the SEC said.

The agency said in the lawsuits that Syron, Mudd and other executives understated exposure to subprime
mortgage loans. From 2007 to 2008, Freddie Mac executives said the company’s exposure was from $2 billion to $6 billion when it was actually as high as $244 billion, according to one SEC complaint.

Talk about understated, what about the Democrats in Congress? Shouldn’t we prosecute Barney Frank, Chris Dodd, Maxine Waters and all the others who assured us that Fannie and Freddie were stable? Are they not culpable for creating one of the worst financial disasters in American history?

It will take generations to overcome the mess these greedy bastards created. And sadly, only a handful will be held to account.











Tuesday, December 6, 2011

Obama Co-opts Teddy Roosevelt to Validate Policies




Barack Obama and his acolytes once again are trying to co-opt another former president for their benefit. This time the Anointed One traveled to Kansas to give a speech that the media is comparing to Teddy Roosevelt’s “New Nationalism” speech.

I don’t know why it is, that today’s progressives have to “channel” historical figures to validate their policies. Maybe Eleanor Roosevelt can explain this cognizant dissonance through her medium, Hillary Clinton. Better yet, they have a former president who is alive and a fellow traveler: Jimmy Carter. Who better embodies the error of their ways, than he?

But humility is not a streak that runs down Obama’s back. And historical truth, whether it is current or pertains to the founding, is laughed and scoffed at; it’s merely used as a tool to shape a political means. And the Anointed One demonstrated that in his Kansas speech.

Now, for many years, credit cards and home equity loans papered over this harsh reality. But in 2008, the house of cards collapsed. We all know the story by now: Mortgages sold to people who couldn't afford them, or even sometimes understand them. Banks and investors allowed to keep packaging the risk and selling it off. Huge bets -- and huge bonuses -- made with other people's money on the line. Regulators who were supposed to warn us about the dangers of all this, but looked the other way or didn't have the authority to look at all.

We did have regulators who warned us of the shenanigans of Fannie Mae and Freddie Mac. But they were castigated by likes of Barney Frank, Chris Dodd, Maxine Waters and the Congressional Black Caucus. And those mortgages wouldn’t have been sold to people who couldn’t afford them if it weren’t for the asinine laws and regulations made by the D.C. swamp monsters. But that is an inconvenient truth to the master of denial.


Obama continues on this absurd rewriting of history.

Now, in the midst of this debate, there are some who seem to be suffering from a kind of collective amnesia. After all that's happened, after the worst economic crisis, the worst financial crisis since the Great Depression, they want to return to the same practices that got us into this mess. In fact, they want to go back to the same policies that stacked the deck against middle-class Americans for way too many years. And their philosophy is simple: We are better off when everybody is left to fend for themselves and play by their own rules.

Talk about chutzpah! Who’re the ones who keep bailing out Fannie and Freddie? Who’re the ones who want to keep giving loans to people who can’t afford them? It’s because of Democratic policies that have undermined the middle-class. It’s their philosophy that has brought down the whole world’s economy. But don’t expect people like Barack Obama to take responsibility for their actions. Hell no! It’s everybody else’s fault but theirs.

Everybody should read Teddy Roosevelt’s 1910 New Nationalism speech. He typifies a progressive politician. The man speaks out of both sides of mouth. Here is an example:

I believe in shaping the ends of government to protect property as well as human welfare. Normally, and in the long run, the ends are the same; but whenever the alternative must be faced, I am for men and not for property, as you were in the Civil War. I am far from underestimating the importance of dividends; but I rank dividends below human character. Again, I do not have any sympathy with the reformer who says he does not care for dividends. Of course, economic welfare is necessary, for a man must pull his own weight and be able to support his family. I know well that the reformers must not bring upon the people economic ruin, or the reforms themselves will go down in the ruin. But we must be ready to face temporary disaster, whether or not brought on by those who will war against us to the knife. Those who oppose reform will do well to remember that ruin in its worst form is inevitable if our national life brings us nothing better than swollen fortunes for the few and the triumph in both politics and business of a sordid and selfish materialism.

As you see, class warfare is a staple with the progressives. Is it any wonder that Barack Obama would co-opt him?


Source: http://www.latimes.com/news/politics/la-pn-text-obama-speech-kansas-20111206,0,4426647.story?track=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+latimes%2Fmostviewed+%28L.A.+Times+-+Most+Viewed+Stories%29&utm_content=Google+Feedfetcher

http://teachingamericanhistory.org/library/index.asp?document=501

Sunday, December 4, 2011

Barney Frank's "Gratuitous Nastiness" Won't be Missed




When Barney Frank announced his retirement, it was as if Christmas came early. How many times have we watched this nasty excuse of a human being berate his constituents and political opponents? I’ve often wondered about his district. What kind of people would allow a man of such low character to represent them in Washington D.C. for 32 years?

Here is an excerpt from an article written by Jeff Jacoby outlining a career of “gratuitous nastiness”:

Frank has long been "one of the most notorious bullies" on Capitol Hill, remarked Dana Milbank in The Washington Post. The Massachusetts Democrat will be remembered not just for his left-wing politics or as the first openly gay member of Congress, but also for his "gratuitous nastiness," as Milbank put it – the public tongue-lashings, the spiteful mockery, the caustic abuse of aides, the almost routine willingness to tell people how stupid they are. This isn't just impatience; Frank plainly takes a certain pleasure in publicly humiliating his victims. It isn't hard to find stories of Frank berating someone to the point of tears. But I have never heard of him apologizing for it afterward.

Ironically – or maybe it's just human nature – Barney Frank has no trouble excoriating in others the ugly behavior to which he so often resorts. He has been unsparing toward Newt Gingrich, for example,
describing him as having "made a career out of attacking people around here and trying to rip them apart." I have heard him caution his allies on the left about the importance of "showing a bit of respect for cultural values with which you disagree," and admonishing them not to "call people bigots and fools just because you disagree with them."

But when Frank – who often condemns the sour tone in Washington and Congress -- was politely asked on NBC's "Today" show last week whether he might have contributed to the bitterness in the Capitol, his answer was no. Instead,
he nastily scolded the anchor for her "negative approach."


And for good measure, here is an example of Barney’s contempt for his constituents:









































Tuesday, November 1, 2011

Fannie Mae and Freddie Mac Executives to Get Fat Bonuses

Have you heard the latest Fannie Mae and Freddie Mac outrage? Apparently, their executives are to receive millions in bonuses. And they just begged Congress for another taxpayer funded bailout:

The two housing giants have received about $141 billion in taxpayer funds since the government took them over in 2008 during the financial crisis.

Politico first reported the $6.46 million in bonuses for the top five officers at Freddie Mac -- including $2.3 million for CEO Charles E. Haldeman Jr., who is stepping down next year -- and $6.33 million for Fannie Mae officials, including $2.37 million for CEO Michael Williams, for meeting modest goals.

A second bonus installment for Freddie executives in 2010 has yet to be reported to the Securities and Exchange Commission, Politico reported.

White House aides say the president took a lead on cleaning up excessive compensation on Wall Street with the Dodd-Frank bill, but those provisions do not apply to Fannie and Freddie.

“The White House was not involved and nor should it be,” White House Press Secretary
Jay Carney said Tuesday

The White House is not involved? Well, who in the hell is ultimately responsible for the oversight of Fannie Mae and Freddie Mac?

The Federal Housing Finance Agency (FHFA) was created on July 30, 2008, when the President signed into law the Housing and Economic Recovery Act of 2008. The Act gave FHFA the authorities necessary to oversee vital components of our country’s secondary mortgage markets – Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. In addition, this law combined the staffs of the Office of Federal Housing Enterprise Oversight (OFHEO), the Federal Housing Finance Board (FHFB), and the GSE mission office at the Department of Housing and Urban Development (HUD). With a very turbulent market facing our nation, the strengthening of the regulatory and supervisory oversight of the 14 housing-related GSEs is imperative. FHFA's mission is to provide effective supervision, regulation and housing mission oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks to promote their safety and soundness, support housing finance and affordable housing, and support a stable and liquid mortgage market. As of September 2010, the combined debt and obligations of these GSEs totaled $6.7 trillion, which is $2.7 trillion below the total publicly held debt of the USA. Freddie Mac and Fannie Mae also purchased or guaranteed 65% of new mortgage originations. Considering the impact of these GSEs on the U.S. economy and mortgage market, it is critical that we intensify our focus on oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.

I wonder what the FHFA has to do with executive bonuses and compensation at these G.S.E.’s:

“FHFA has a responsibility to Congress and taxpayers to efficiently, consistently, and reliably ensure that the compensation paid to Fannie Mae’s and Freddie Mac’s senior executives is reasonable. This is especially true when you realize that the U.S. Treasury has invested close to $154 billion to stabilize Fannie Mae and Freddie Mac, and the GSEs are spending tens of millions of dollars for executive compensation,” Inspector General Linick said.


And the White House has no say or oversight in these matters? Please …




Saturday, October 1, 2011

Slick Willy Bemoans Perceived Legacy

Ex-president Bill Clinton is whining about his perceived legacy. And all of us know how valuable that is to the connoisseur of cigars and pizza. He bemoaned the reality of conventional wisdom during a speech at his presidential library and spa:

“I go crazy every time I read the conventional wisdom,” he said Friday night at his presidential library in Little Rock, Ark. “So part of the Republican narrative is that I was ‘saved’ from myself by the election of the Republican Congress [in 1994] that ‘forced me’ to do welfare reform and ‘made the balanced budget possible.’”

Clinton said reporters and commentators “keep saying this, overlooking all relevant facts.”

The facts are the Clinton administration didn’t act on anything until it was poll tested. Hell, the Clintons even had a focus group decide their vacations.

But I will give Slick Willy credit where credit is due. In 1993, the Clinton administration began its public/private housing initiative that brought about an economic bubble unseen since the tulip mania of the seventeenth century. It was under his stewardship that brought about the machinations of Fannie Mae and Freddie Mac. So, I’ll give him his due, and hopefully future historians will too.

Read more: http://www.politico.com/news/stories/0911/64881.html#ixzz1ZYPDYHma


Wednesday, September 14, 2011

Solyndra is the Epitome of a Public/Private Partnership



Solyndra is another example of how a public/private partnership is doomed to failure. ABC News (surprisingly) reported the following:

The new probe involves the $535 million loan, arranged by the Energy Department, but actually processed by the Federal Financing Bank, a government lending institution that falls under Treasury's control. Already, the FBI and the Energy Department's inspector general have executed search warrants at Solyndra's headquarters and questioned company executives.

"We're going to look at everything the FFB had to do with its role in this thing," Rich Delmar, a spokesman for the Treasury Department's inspector general, told ABC News and iWatch News.

Earlier this month, iWatch News and ABC News disclosed that Solyndra received a rock-bottom interest rate of 1 to 2 percent -- lower than those affixed to other Energy Department green energy projects. The low rate was set even as an outside agency, Fitch Rating, scored Solyndra as a B+ -- "speculative" -- investment. Energy Department officials said the bank set the rate, based on formulas including the payout length, and that Solyndra did not receive special treatment.

You would’ve thought that the monstrous failure of Fannie Mae and Freddie Mac would put an end to the plaudits of crony capitalism. But here we are again, with the taxpayers bending over and grabbing their ankles, while the politicians and bureaucrats stuff their pockets and lord their power over we plebeians.

Source: http://abcnews.go.com/Blotter/solyndra-loan-now-treasury-launching-investigation/story?id=14521917

Friday, September 2, 2011

Federal Government Sues Banks for Mortgage Fraud

The Federal government is trying to recoup the losses that were incurred by the two government sponsored entities that ran hog wild over the past couple of decades. Fannie Mae and Freddie Mac have incurred billions of dollars in toxic assets; assets that the taxpayers have to eat because of an implicit understanding that the federal government guaranteed these fraudulent loans.

A U.S. regulator filed lawsuits Friday against 17 of the nation's largest banks over losses from mortgage-backed securities, aiming to recoup billion of dollars stemming from the failed investments.

The Federal Housing Finance Agency, the federal regulator for Fannie Mae and Freddie Mac, is
suing some of others for violating federal and state laws in the sale of mortgage-backed securities.

The FHFA alleged that the loans had different and more risky characteristics than the descriptions contained in the marketing and sales materials provided for those securities.

The agency alleged that the banks and mortgage lenders falsely represented that the mortgage loans in the securities complied with guidelines and standards, and they included representations "that significantly overstated the ability of the borrower to repay their mortgage loans."

The total price tag for the securities bought by Fannie and Freddie is $196 billion. The government didn't provide a dollar amount for damages, but it said it wants to have the purchases of the securities canceled, be compensated for lost principal and interest payments, as well as attorney fees and costs.

And while the feds are at it, why don’t they sue the ratings agencies, National Association of Realtors, every congressman who perpetuated this fraud committed by Fannie and Freddie. As a matter of fact, all those executives who served at these two government sponsored entities should be in jail. But their too damn well connected to the politicos who run this country. As a matter of fact, many of these people have served in presidential administrations.

Source: http://www.wnyc.org/blogs/wnyc-news-blog/2011/sep/02/federal-government-sues-banks-over-mortgage-losses/

Monday, August 8, 2011

Fannie Mae and Freddie Mac Get a Downgrade






The two biggest leeches (other than General Electric) on the taxpayer’s purse just received a downgrade by S&P. Fannie Mae and Freddie Mac are completely dependent upon federal government largess. And after the U.S. received their reprimand from the ratings agency, it was appropriate that these two government sponsored entities should receive the same:


In downgrading Fannie Mae, Freddie Mac and several other U.S. government entities, S&P cited their dependence on federal support. Included in the downgrade were the senior issue ratings on debt issued by Fannie and Freddie, the giant mortgage-finance firms.



Of course, the feds stick firmly behind these two discredited dirt bags:


Edward DeMarco, acting director of the companies' regulator, the Federal Housing Finance Agency, said the government's commitment to support the two mortgage giants "remains unaffected by the Standard and Poor's action."


Can you say another housing bubble?



Friday, August 5, 2011

Fannie Mae Bums Another $5 Billion from Taxpayers


Fortune 500’s fifth largest corporation just asked for another taxpayer funded loan (bailout); this just after they received billions during the financial crisis:

WASHINGTON - Mortgage finance giant Fannie Mae said it would ask for an additional $5.1 billion from taxpayers as a weaker housing market causes continued losses on loans made prior to 2009.

The largest U.S. residential mortgage funds provider on Friday also reported a second-quarter net loss attributable to common shareholders of $5.2 billion, or 90 cents per share.

But hey, they have paid the taxpayers some of the money they borrowed:

Fannie Mae paid back $2.3 billion in dividends to taxpayers in the second quarter, reducing its net capital draw to $2.8 billion. Since the firm was seized by the U.S. Treasury in 2008, it has needed about $104 billion in government capital injections, although it has paid back about $14.7 billion in dividends.

Fannie Mae said its second-quarter loss "reflects the continued weakness in the housing and mortgage markets, which remain under pressure from high levels of unemployment, underemployment and the prolonged decline in home prices since their peak in the third quarter of 2006."

It said expenses related to mortgage modifications to keep struggling borrowers in their homes also contributed to its loss.

I think we all recognize what kind of bum Fannie Mae is. We’ve all ran into this character before. You know, the guy who borrows money from you one day, then shows up and pays you all of what is owed or partial; then he comes back the following week asking for another loan; and this dance goes on until you’ve had enough. There is only one way to rid yourself of this panhandler and that is to kick his ass to the curb.








Monday, May 9, 2011

Fannie Mae Ranked #5 in Fortune Magazine; Request Another Government Bailout



Fortune 500 Magazine just ranked Fannie Mae the fifth largest company in America, just above another federal government whore: General Electric.  And wouldn’t you know, as if on queue, Fannie Mae is requesting another $8.7 billion bailout.  Let's look at the history of this most august and profitable company in the past couple of years:
Fannie Mae reported Friday that it lost $23.2 billion in the first three months of the year as mortgage defaults increasingly spread from risky loans to the far-larger portfolio of loans to borrowers who have been considered safe.

The massive loss will prompt a $19-billion infusion from the government to keep the mortgage lender solvent, on top of a $15-billion investment of taxpayer money earlier this year

Notice the size of the loss of that year from the previous:

Fannie's most recent loss compares with a $2.2-billion loss in the first quarter of last year, before the government takeover.
Washington-based Fannie Mae and McLean, Va.-based Freddie Mac have been growing ever more dependent on federal largess. The Federal Reserve has bought $366 billion of their mortgage securities and $70 billion of their debt, and has pledged to buy hundreds of billions of dollars more of both. The Treasury has committed to investing as much as $200 billion in each company to keep them solvent and has bought $124 billion of their mortgage investments.

In total, the government has committed about $2 trillion to supporting Fannie and Freddie and buying the securities they issue.

No one ever accused the politicians and bureaucrats in Washington D.C. of competence.  We as a people are in for a world of hurt.

Source:  http://articles.latimes.com/2009/may/09/business/fi-fannie9

http://money.cnn.com/magazines/fortune/fortune500/2011/full_list/index.html