Fannie Mae, Freddy Mac & Who
By: Ken Hughes
These two failed agencies were one more way of congress controlling the free market. These two agencies were meant as an attempt to make home ownership available to more of the poorer citizens in our society. Food stamps and public housing had worked so well why not go one step further and offer home ownership to these underprivileged undeserving underachievers who claim entitlements as some kind of right? Congress has come to believe itâ€™s their lot in life to spend the public’s money and where else but on those who donâ€™t have any money and are perfectly content to accept congresses gifts as long as thereâ€™re no expectations placed on them.
With the creation of Fannie May and Freddy Mac the housing market became a cash cow for about half of congress, nothing could be safer, or so these inside the beltway people assumed. Some of the investments of some members of Congress are known. Nancy Pelosi and her husband hold 500K shares of AGI the illegitimate child of Fannie May. The Kerryâ€™s had 2.5 Million dollars invested in AGI. We know this because of their positions in government require their tax reports and investments to be disclosed. With the housing market being so lucrative these past few years we wonder how much the rest of congress profited from the exploits of these two sham agencies F-May and F-Mack.
There is a God and finally he / sheâ€™s found a way to dig into the bank accounts of congress, praise be to God.
Throw the media a bone and theyâ€™ll turn it into a T-bone steak. Under similar circumstances Franklin Roosevelt, with the assistance of congress and the press, destroyed an economy and created a decade long depression. We will survive this situation because rather than having a president with no business experience we have a man who has a Master in business from Harvard and knows how to handle this type of crises. Bush found the most qualified men and told them to resolve things then he stepped back and let them do their job. Not only have the American markets returned but the rest of the world is breathing better as well. Today the sunâ€™s out and the crises is nearly over. The consequences will be with us for years but thereâ€™s always a price to pay for stupidity.
Slowly over time some strange expressions creep into our language. Such as home ownership, rather than I promise to pay. People who judge their wealth by their credit score rather than their bank account. Visa, Master Card and American Express are commitments not entitlements. The word trust is still in the English language or should be.
Senator Obama says he will pass legislation guaranteeing affordable interest rats so people wonâ€™t loose their homes. Mr. Obama there not their homes, there not the lenders homes nor the builders homes they belong to the mythical credit fairy. The entire real-estate industry has been based on a promise to pay and the assumption everyone has a right to ownership regardless of circumstance. The Declaration of Independence only guarantees us the right to life liberty and the right to peruse all those other things we desire. Thereâ€™s no guarantee in any of the founding documents the government is responsible for the publics over indulgence.
Fannie May and Freddy Mac were created to be guarantors for questionable loans to unqualified borrowers. Congress determined every family in America had a right to own property. There are no provisions in any of the founding documents authorizing the government to become an outright lender. Congress chose to enter the lending market through the back door as they frequently do when the constitution gets in the way.
Whoâ€™s to blame for the financial mess congress has gotten the country into? Is it Harvard for graduating so many Lawyers and MBA who think up these scams or congress for elevating these young people to higher positions than they would ordinarily attain in a free market. Washingtonâ€™s become a nasty nest of nepotism either through blood, marriage or close association, otherwise referred to as The Good Old Boys Club.
Every election those running for any office either as a new comer or an incumbent create a scenario the country is in miserable shape and only they have the solution. Do they really think the public doesnâ€™t recognize they were the ones who created the mess? The only reason they are continually reelected is because the public fears the unknown more than the ailment.
Neither McCain nor Obama were very presidential this week when it came to the financial crises. McCain lost his famous temper and immediately started assigning blame. Obama ran to the cellar to hide behind the furnace until it was safe to come out. Biden was more interested in kicking some football teamsâ€™ ass to even notice there was a crisis. Only Palin remained calm and suggested we stay calm and allow the experts do their job.
For years congress has used the housing market as an indication of how well our economy is doing and thatâ€™s been a mistake. The economy should be judged on goods and services produced not consumer credit ratings. The housing market collapsed because it became too easy for unqualified persons to entry the market as both lenders and borrowers. The only thing backing these loans was trust there was never any real money available. One of the jobs of congress is oversight, that doesnâ€™t mean interfering it means overseeing. The economy needs traffic cops in sneakers not steel toed boots the same as the streets of America.
The few problems this country faces are man made not made by any president. All that needs to be done to make it right is for each of us to think with our brain not our emotions when we vote. Then act like concerned citizens and not sheep.