HEADLINES

Thursday, October 21, 2010

Mountains of Our Money to Be Poured Down Fannie and Freddie

Our liberal rulers, who brought about the 2008 financial crisis with Affirmative Action "affordable housing" policies that forced banks to make bad loans under the insane Community Reinvestment Act, and by blocking Republican attempts to reform Fannie Mae and Freddie Mac, have done nothing whatsoever to prevent the disaster from recurring on a still larger scale — as it soon will:

The federal bailout for Fannie Mae and Freddie Mac could nearly double in size during the next three years, according to projections from the companies' federal regulator.
Fannie and Freddie, the federally controlled mortgage finance giants, will need as much as $215 billion more from taxpayers in the next three years to meet their financial obligations, the Federal Housing Finance Agency said Thursday…
The growing taxpayer infusions will cover losses Fannie and Freddie suffer on home loans, as well as payments the companies must make to the U.S. Treasury in exchange for a federal guarantee to provide cash to keep the companies solvent. …
To date, the Treasury has injected $148 billion into Fannie and Freddie, $13 billion of which has been returned to the government. Under the worst case, in which the country enters a second recession, the total infusion would be $363 billion in three years.

As a red diaper baby who has spent his entire life steeping in radical left ideology, Obama could not help but be aware of the Cloward-Piven strategy, which calls for collapsing the economy with excessive government spending, thereby paving the way for the imposition of totalitarian collectivism. This explains why the Redistributor in Chief has pledged unlimited taxpayer-funded support for the black holes of corruption, communism, and incompetence known as Fannie and Freddie.

On a tip from Byron.








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