Blank-Check Bailout for Fannie and Freddie Means Taxpayers Get a Lump of Coal from Obama
by Dan MitchellEven though politicians already have flushed $400 billion down the rathole, the Obama Administration has announced that it will now give unlimited amounts of our money to prop up Fannie Mae and Freddie Mac, the two government-created mortgage companies.
While President Obama should be castigated for this decision, let’s not forget that this latest boondoggle is only possible because President Bush did not do the right thing and liquidate Fannie and Freddie when they collapsed last year. And, to add insult to injury, Obama’s pay czar played Santa Claus and announced that that a dozen top “executives” could divvy up $42 million of bonuses financed by you and me. Not a bad deal for a group of people that more properly should be classified as government bureaucrats.
Here’s an excerpt from the Washington Post about the Administration’s latest punch in the gut for taxpayers:
The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress. The Christmas Eve announcement by the Treasury Department means that it can continue to run the companies, which were seized last year, as arms of the government for the rest of President Obama’s current term. But even as the administration was making this open-ended financial commitment, Fannie Mae and Freddie Mac disclosed that they had received approval from their federal regulator to pay $42 million in Wall Street-style compensation packages to 12 top executives for 2009. The compensation packages, including up to $6 million each to Fannie Mae and Freddie Mac’s chief executives, come amid an ongoing public debate about lavish payments to executives at banks and other financial firms that have received taxpayer aid. But while many firms on Wall Street have repaid the assistance, there is no prospect that Fannie Mae and Freddie Mac will do so.
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296 Comments
I'll be holding a party at my house when New Year's 2010 gets here. And then start making a list who should be voted out and who gets to stay put.
Government can not run business, lower cost or be trusted to manage anything efficiently.
I sure hope you are able to hold your party Rita … Because with all the vote fraud crooks out there, it may not be that easy to do.
When did America start giving unlimited financial assistance to anything? This would be Unbelievable if it weren't true. And who can stand and say we are not Communist now.
I'm sick to my stomach! This is incredible!!!
The Conservative Edge
I think most of us have seen the videos of the Franks, Water, Rains and other Dems/Libs talking about how Fannie and Freddie didn't need the same level of regulation as banks, how they didn't need the same level of capitalization. How there is nothing safer than a mortgage. Why the McCain camp didn't focus more on this when Bush and the Republicans were being blamed for the mortgage crisis, I still don't understand.
Now, after the President slamming the bank CEO's as fat cats, the Fannie and Freddie CEO's are going to get millions in salary, deferred comp and bonuses.
Lump of coal if we are lucky for us and slush funds for them. Get rid of them.
President Bush tried, at least TWICE, to get Congress to do something about Fannie & Freddie, when he was president. The Congress rebuffed him, the Dems ridiculed him, and made grandiose speeches about how "honest" and "wonderful" and "needed" and "corrupt free" Freddie and Fannie were, all the while people such as Raines, Gorelick et all were, whilst those who were running it were getting many millions for the lousy job they were doing.
There NEVER would have been a housing bubble nor a "crash", had the racists and uber lefties, starting with Carter and being pushed farther by Clinton, hadn't forced through loans made to people who everyone knew would never been repaid.
Something is still wrong with this story. Obama cannot unilaterally raise the US debt ceiling by executive order. I have read several versions of this story, but I have not found anything explaining this contradiction.
400 Billion down the rathole and they GET big bonuses !!!!!
http://money.cnn.com/2009/12/24/news/companies/fa...
Can'tt wait till FREE HEALTHCARE !!!! (They love it)
http://www.youtube.com/watch?v=P36×8rTb3jI
Freddie and fanny the government zombies that continue their destruction. I love the way both government parties point the finger of blame, but they never point to themselves.
"Taxpayers Get a Lump of Coal from Obama".
Here I thought he was out to bankrupt the coal industry, now what, he's promoting it? Go figure…….
" Not a bad deal for a group of people that more properly should be classified as government bureaucrats."
I'd classify the sunsabitches as common criminals.
Unfortunately, all of the criminal activity will continue until we show these bums some real change and find a few citizens willing to carry out the will of, We The People. This day cannot come soon enough.
1redcent, your excuses for President Bush don't hold water. While he was presiden, Bush bragged about how more people owned homes than at any point in U.S. history. He and the republicans made a half hearted attempt attempt at correcting the FM and FM problems. Then, last year, Bush exacerbated the problem with TARP.
Why doesn't Obama and his ilk do these dirty deeds on a Monday morning during business hours instead of at 1:00 in the morning, or just before a 3-day weekend. Yes, that is a rhetorical question.
Here is an article that bears relevance:
The head of the International Monetary Fund has warned that advanced nations will be hit by violent civil unrest if the elite continue to restructure the economy around their own interests while looting the taxpayer. Go to link for rest of the article.
http://www.prisonplanet.com/imf-chief-warns-of-ri...
This is completely surreal.
Tell me what you all think of this. Yahoo has a link to CNN Money about the top states that are losing residents. The top seven in order of rank are: California, New York, Michigan, Illinois, Ohio, Florida, and New Jersey. Those are all states that went to Obama. In my opinion, there are two ways to look at this.
First, you could say that those states are losing population and if they continue to do so they will lose members of the House, but that will happen over a very long period of time.
Secondly, you could say that the infection is spreading and that will happen at much higher rate of speed.
How do you see it?
Real Americans should stop paying taxes
FannieMae and FreddieMac can join the long list of well run government enterprises, like Amtrak, the Post Office, and GM.
Your question reminds me of this article:
The Big-Spending, High-Taxing, Lousy-Services Paradigm
California taxpayers don’t get much bang for their bucks.
http://www.city-journal.org/2009/19_4_california….
Makes a stark comparison between California and Texas in not only the amount of taxes per capita, but the huge difference in how those tax dollars are put to use. Readers Digest version? The beneficiaries of California's tax $$ are the governmental agencies themselves while the quality of service they provide to the citizenry is increasingly poor.
Real eyeopener.
I wonder who will Stand Up and Lead the Revolution, It's time we take America Back One Bank at a Time.
I wasn't making "excuses" at all; merely trying to set the record straight; which you, with your BDS, most assuredly aren't.
President Bush made far more than "a half hearted attempt………………….."; that's YOUR spin. There's plenty of blame to spread around, without your biased ladened reply. stating 1/2 truths and a lot of propaganda.
Absolutely fascinating
When you read things like this, you can glean a deeper understaning how Mussolini wound up on that light post. Just wow! Criminals all of them.
Gorelick, Emmanuel, Raines, Frank, Dodd are just the start of the list of those who should be investigated with regard to the massive fraud perpetrated on the public, ENRON Style. Why has there not been a single peep about the malfeasance at Fannie?
ANSWER: The guilty parties are in charge of investigating.
Fannie has been the high reward 'parking spot' for democrat loyalists.
Fannie is a key reason the markets and the banks failed.
Democrats OWN the Fannie Mae problem. When Bush tried to get something in to fix it we were saddled with an intransigent Democratic congress. They were busy to deny and cover up for fannie, Listen to the Frank, Waters and others who steadfastly defended this corrupt organization. They and only they are responsible for the financial meltdown. The Dems have been inflating the Real Estate bubble for nearly 20 years with the CRA crap.
Exactly and anyone trying to put the blamed on President Bush is suffering from such an extreme case of BDS, that they belongs heavily medicated and in a padded cell; at the least.
Any lost residents can easily be replaced by ACORN. Pay attention. They may even turn up a lot more new people than the number that left and get MORE representatives.
Why do you think the Dems want to control the Census so badly? Why is it that the states with the worst deficits and the highest taxes are all democrat states? Why are the unemployment numbers the worst in high union states? California represents a communicable mental disease that stands to go epidemic and infect every other state. Between the enviromental 'watermellons' and the open border libs, and the public employees unions, California is a LOST CAUSE. Cut our losses, sell California to the Chinese and settle our debt. Let those stupid SOB's see what it is like living under a real communistic state. F them all!!!
He can if nobody stops him.
Old Irish proverb:
"May all your sins be judged by a Senate Ethics committee."
If I could give proper credit to the author, I would. It was left as a comment months ago on a WSJ article re: Dodd, no evidence of wrongdoing, Countrywide.
The author says Obama should be castigated, well I think that should read CASTRATED!
If the Chinese took over California, they'd be drilling off shore in a heart beat.
[...] Blank-Check Bailout for Fannie and Freddie Means Taxpayers Get a Lump of Coal from Obama [...]
What will it take to end this madness? The camel's back was broken long ago. I don't want and apology. I want justice delivered to the traitors and the triumphant return of the US Constitution right the hell now.
Why should the idiots that run Fannie Mae and Freddie Mac collect $42 million in bonuses that comes from you and I? The answer is because they are democrat buddies of Obama. Can someone tell me why Franklin Raines never went to jail?
Our current financial crisis is the result of government control and management of the mortgage lending industry. Only the government could be so stupid and blind as to lose $2 trillion outright ($2,000 billion) lending money to build houses, the safest and most analyzed type of asset existing.
They set standards for the industry to follow, lowered those standards to follow socialist ideology, bought the bad loans that resulted, guaranteed repayment to the institutional lenders if anything went wrong, and pressured ratings agencies to stamp AAA on new and poorly understood mortgage securities.
We Guarantee It
This is a review of public sources of information about what went wrong.
The government is guaranteeing us into poverty. Politicians discovered a loophole in government finances. They could borrow as much as they wanted, off budget and without debate, by granting guarantees.
. . .
Castigated, castrated? – They should be charged with TREASON!!!
http://online.wsj.com/article/SB10001424052748704...
Barney Frank, Predatory Lender, OCTOBER 15, 2009
“Almost two-thirds of all bad mortgages in our financial system were bought by government agencies or required by government regulations.”
http://www.americanthinker.com/2008/09/barack_oba...
Barack Obama and the Strategy of Manufactured Crisis
The Cloward-Piven Strategy – create political, financial, and social chaos, Voting/SEIU, ACORN, illegal immigration, mortgage crisis, and Barack Obama et al
http://www.youtube.com/watch?v=8vJcVgJhNaU&fe...
OBAMA CAUGHT SAYING ACORN AND FRIENDS WILL SHAPE HIS PRESIDENTIAL AGENDA
http://www.nytimes.com/1999/09/30/business/fannie...
Fannie Mae Eases Credit To Aid Mortgage Lending, September 30, 1999
Clinton Administration
(continued)
Supposedly private businesses like Fannie Mae and Freddie Mac borrowed as much money as the entire national debt at the time, $5.4 trillion ($5,400 billion). The politicians crying the loudest about free market failure and lack of regulation were the ones who directed this disaster, blocked regulation in place, and refused restraints. The guarantees go on today.
EasyOpinions.blogspot.com
Sammon, as time passes, I have less and less faith that the political process is sufficient, by itself, to reverse the current trend toward totalitarianism.
These days, I''m trolling for evidence that there are well meaning men and women of good will, who understand that the stakes are nothing less than a world-wide loss of human freedom.
Are there people out there who are willing to act? Or are have we become a nation of frightened old men with bad backs?
At this time, we don't need a bunch of curmudgeons or tin-foil-hatters. What we need are well spoken, thoughtful men and women of action.
Do you know anyone like that?
You don't need a list I can tell you right now any Democrat Lib that's up will probably
loose!
A must watch – at least weekly….
http://www.youtube.com/watch?v=1RZVw3no2A4&fe...
Obama received 4 times more money from Fannie Mae than most other politicians. He worked at a law firm called – Miner, Barnhill & Galland, that sued banks for not issuing enough Sub-prime loans. In 1994 he sued Citibank charging that the bank systematically denied morgages to African-Americans applicants from minority neighborhoods. Obama got his wish, lots of "affordable" housing for the poor, who couldn't afford it. He helped his Fannie Mae friends, at the expense of stupid gullible or sharp money-grabbing ACORN who entices the poor to Fannie Mae, Obama makes his friends richer, not only at their expense, but also ours. This man is pure evil!
And to be fair, GW tried to stop it 6yrs ago but the Dems blocked it. John McCain also tried but again the bill was also blocked by the Dems.
Remember "The Lynching of Freddie Mac and Mae"? The republicans were "racist" for questioning their finances.
Democrats in their own words covering up the Fannies':
http://www.youtube.com/watch?v=_MGT_cSi7Rs&fe...
"Secondly, you could say that the infection is spreading and that will happen at much higher rate of speed."
Not sure what you mean by "infection", but some of those states have high taxes and/or high unemployment.
Repubs did a good job of bringing out the critical points.
Oh yes, I remember all of that.
The Dems have been pulling the "RACE CARD" for a very long time, all the while they are attempting to keep blacks chained and on their flavor of a slave camp.
"The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac.'….
This is proof that Obama is deliberately bankrupting this country.
Lets look a little closer and connect the dots Obama/ Pritzker track record of failed subprime loans
http://bfeldman68.blogspot.com/2008/10/obama-camp... October 22, 2008
Obama Campaign's Pritzker/Superior Bank Scandal Link?
Penny Pritzker is the National Finance Chair of 2008 Democratic Party presidential candidate Barack Obama’s campaign. Yet the Obama campaign’s national finance chair served as chairman of the Superior Bank from 1989 to 1994–before the savings and loan institution collapsed in July 2001, due to the Pritzker bank’s involvement in financially reckless subprime mortgage lending.
Incidentally, former Superior Bank Chairman Penny Pritzker contributed $100,000 to the Democratic National Committee [DNC] in 2000.
Bob as a matter a fact I do, check out this guy running for Congress. By 2012 he should be our next President if America had any brains.
Allen West
http://www.youtube.com/watch?v=VP2p91dvm6M
And………. the JOKER STRIKES AGAIN!
There are others to include Jamie Gorelick who should be prosecuted. Do a google search on Gorelick. How can someone wh is so closely tied to the failings of our security on 9-11 have sat on the 9-11 commission rather than testifying to her obstruction of our intelligence services talking to one another. To be then rewarded with a cherry job at Fannie Mae. How is it that these people can get away with murder, literally. Our republican reps have alot to answer for. Not having cleaned this mess when they were in power is unexcusable. We need principled people in office. No more of these compromised compromisers!!!!!
How do we put a stop to all this?
Next thing you know they will be awarding a couple of billion Obamabucks to ACORN. Wouldn't surprise me a bit.
and soon Healthcare !!!!! I mean really .. loose Amtrax and the psot office = then maybe we can start to talk about health care
http://www.independent.co.uk/news/world/americas/...
If we sit back and do nothing .. we cannot keep waiting … Think IRAN .. we keep waitong and soon it will be too late !!!!
[...] the rest here: Big Government » Blog Archive » Blank-Check Bailout for Fannie and … By admin | category: Uncategorized | No Related [...]
You've got that right, bill. I'm sure ACORN is working hard to rig key elections.
Gotta check put this video. Hilarious take on Santa Baby by conservative actress, Sharise Parviz' a liberal Christmas theme song.
http://www.youtube.com/watch?v=JYtYwnYKOUs
This is the 3rd time in several months where my comment about Louisiana and New Orleans being under Dem control for decades where they ran it into the ground has been rejected as a post. I'm befuddled as to why.
I don't get this, but yes, I do under this administration. The books were being cooked at Freddie and Fannie and now those in charge are being rewarded.
Emanuel was at Freddie earning $375,000 for attending 6 meetings as a board member, including one where it was discussed how to pull the wool over the eyes of taxpayers (paraphrasing). After that, he went to Wall St. and without any banking experience, made $16+ million on one deal in less than 2 years. The guy who did the deal with him is now in charge of GM. Coincidence, I'm sure. /s BTW, that guy has no car experience, but what the heck.
Either that, or he's so incompetent, he doesn't realize he's duplicating the problem. This could also be owed to his extreme narcissism, because for a man of few accomplishments, he's been able to fool most people for years. But I agree. He's so into redestributing the wealth, that he doesn't care if he bankrupts the country. He HATES this country. He's trying to destroy it so that he can rebuild it from the bottom up into his idea of a Marxist utopia. With him as ruler, of course.
Shouldn't that be any Democrat that's up — moderate or liberal who voted for this heath care fiasco? Including the rest of the cr@p Obama has passed this year and the promise of more of the same that he will pass next year?
We are backing the debt for a reason. China and other nations have parked a lot of their money in our GSE's. If we were to liquidate those institutions the global geopolitical ramifications would be astounding.
That should be EVERY incumbent, Democrat or Republican..voted OUT!!
Hey acheyjake, you should be sent to bed without supper you little troll.
When finally in 2006, Bush along with John McCain tried to do something about Fannie and Freddie, they were rebuffed by the Democrats. There are videos to prove it!
Oh, you missed the videos of Barney Frank, Maxine Waters and Dodds loudly and angrily proclaimed that there was nothing wrong with Fannie and Freddie and that they were both financially sound? Incredible!
As for the TARP that Bush pushed through, it was the wrong thing to do, but it was done on the behalf of Obama. It was Obama who exacerbated the problem — especially when he bailed out GM to supposedly keep them from going bankrupt and instead turned the company over to the unions and closed numerous profitable dealerships. In the end, GM declared bankruptcy – which they should have done in the beginning.
Why don't you wake up to the real world where the majority of people don't rely on the government for paychecks and jobs?
Replying to JHTRazor,
Haven't you heard, all the banking "fat cats" are on Obama's ever enlarging government payroll.
Yeah, Democrats keep the races enslaved to welfare and handouts and promise them anything to keep them voting for Democrats. It's what works for them.
Replying to flappdoodle
How True. Very SAD, but very TRUE!
What amazes me about ACORN is they act completely clueless about what they are doing for the democrats! They actually DO NOT see that they are cutting off their noses, to spite their faces…!! What's up with these idiots? They actually thing they are going to be getting something out of this…?? I'm talking about the 'foot soldiers' NOT the people in charge!!
Most people in this country don't know who Mussolini was, and they also don't realize what Nazi's really stood for — thanks to today's education standard in American History.
These criminals need to be tried for Treason!! We need someone in the White House that is honest enough to run this country without taking kick-backs for everyone they owe something to !! Their is only one person I know of that can and WILL do just that…Sarah Palin!!! She will NOT be afraid of the good ole boy network in Washington!!!
The editor was just being polite.
You answered your own question — because he was probably a democrat buddy of Obama.
How can you say that, the government thinks they are doing a great job, that is why they own GM, Chrysler, control AIG and several banks, GE and now they have taken over the entire Healthcare Industry. So someone (not me) thinks the government is a cross between JP Morgan, Bill Gates and Warren Buffet!
There is money laundering going on between all Government Supported Entities and the DemoNatzi Party. This is how they funnel taxpayer money to themselves.
The federal government should be restricted from handing out taxpayer dollars. In fact by the U.S. Constitution they are. The federal govt, likewise the DemoNatzi's have overreached their power. The time for slapping their hand is over, this time it must be cut off.
Actually Bush, I think, was listening to Bernanke on TARP One. But unlike Regan he did it wrong. Regan put all the burned assets in a trust and released them slowly. This kept the market from totally tanking like it is now. So you can buy houses and waterfront condos in Miami for $30k.
I really don't understand why these guys don't get audited just like the banks? Bring out Ron Paul and get these entities Audited and jail the crooks. From what I have read there are more crooks in these organizations than any other.
What happened to the GAO don't they have any authority over these groups. Our government can't run a hot dog stand and they are now in control of car companies, banks, GE, AIG, and now healthcare.
And after a terror attack, while on vacation in the worst time zone in the US, after Christmas, no this administration wouldn't try to hide this at all.
This hopey changey thing isn't working very well. If this were Bush there would be pictures of him with a crown and sitting on a throne!
God help us if that happens here. The liberals (who over all hate guns) would be slaughtered. We need to hit them where it hurts, hold all the tax money next year until April 15th of the following year. Each state should set up a fund for their states money to flow into and that would eventually starve the government back into submission.
And on shore. California has both fantastic oil reserves on land that couldn't be economically drilled at $30 a barrel but at $70 there is a bunch of oil on land. Not to mention the mining that has been stopped for 40 years. California has tin, copper, gold, silver, vermiculite and uranium that have not been mined for years. Believe me, if they had something other than an insane environmental position on mining they would not know what to do with all the jobs and revenue.
Remember what created CA, in 1849 they learned about mining and created the gold rush. Not to mention the oil boom. CA is almost as good as Alaska with minerals but they are totally untouchable.
I think they are a well oiled Democrat machine. I think they know exactly what they are doing and I think they are as crooked as a dog's hind leg. I also see the group in Miami called the "Homeless Voice" that too is an offshoot of ACORN. They collect money at the busy intersections in Miami.
I am so tired of the two class system but unlike anything before it's not about money but power. Always remember the US was not founded on class envy, we were founded on unjust power and taxes. Oh sorry that is what Obama is doing.
Actually we need to pay our taxes to a lawyers escrow account and file a class action law suit. That does two things it keeps the money from Washington and keeps us out of jail. I really like the keeping us out of jail part!
[...] Blank-Check Bailout for Fannie and Freddie Means Taxpayers Get a Lump of Coal from Obama [...]
Punish success and reward failure is the Lib ideology that our president embraces. Obama has clearly stated that one of his goals is to create a "leveling" of society, the folks at the bottom need his help to lift them up, and those at the top need to be knocked off their perch by any means neccessary, the ends justify the means and thusly anything goes with these unprincipled Libs. Then when all is done their ideology will pollute society until it is repealled and barrak and barney frank are long gone celebrating what "good" people they are. Losers
Well not 1 Rep voted for that Health care garbage, and why should incumbent conservative be voted out when they are the only ones opposing. Joe Liberman who stood by McCain voted yes for Health Care, He is a phony independent, along with McCain,And those fake ass "blue dog" so called moderate liberals voted down the line with Polosi, Reid and Obama, they are as far left as Obama!
Thank God I live in a Conservative district , but in a liberal, union ramped state
there a reply below
America has to fall in order for the World Government "Superpower" to exist. That is what is happening
It has already been predeclared by the Bible.
Mike Cox AG for MI, running for mayor, True Conservative, believes in core Constitutional values
Also my Rep, Mike Rogers, MI 8
sorry Governor not mayor
They were still pushing sub prime loans in 2006 when it was falling apart, THEY are idiots with no logic of economics! I could run that system better.
A government guarantee is a rock solid assurance of total failure. Their record speaks for itself.
Let us know when the march starts. I'll be there with noose in hand.
I got a very dull knife if you need it…
Can't you see that it is the U.S. Government that wants to lead this World Government Superpower!
You mean "OUR" destruction, not theirs, don't you?
That's just because they have not taken any pictures of him!
That's like saying that the Mob also acts completely clueless by supporting the Democratic party.
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