Posts Tagged ‘Fannie Mae’

After the government drama of the last few weeks, a few ideas/steps remain clear:

1) Credit is now a civil right in this country. Why not amend the Constitution?

2) Therefore people who could not traditionally qualify for credit (home ownership, credit cards) are now and will continue to receive it

3) Banks who do not extend credit those who traditionally don’t qualify are wrong

4) When banks extend credit to the traditionally unqualified- and then the unqualified lender mismanages his credit- it’s the bank’s fault

5) The government is responsible for rescuing banks, automobile manufacturers, airlines…

6) Repeat from 1)

Because owning a home is nearly a right in the United States, home loans will soon be structured like student loans.


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Great article from CNN this morning:

Commentary: Bankruptcy, not bailout, is the right answer

The fact that government bears such a huge responsibility for the current mess means any response should eliminate the conditions that created this situation in the first place, not attempt to fix bad government with more government.

The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.

Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of a businesses that remain profitable.

Normal people, like my family, have conventional mortgages on our homes and 401Ks for our retirement.  We are not in the housing market or stock market for short-term gain.

Normal people, or what the media is calling “Main Street”, don’t like it when irresponsible people who cannot pay their mortgages receive a BETTER loan than responsible homeowners.  It appears we are turning home ownership and its financing into the student loan program- just pay as much as you can.

Today I visited CitiMortage.com – that’s our mortgage holder.  On the homepage there’s a link called “Help with Financial Difficulties” which takes you to this page.

Check this out:

To determine the need for hardship assistance, start with the following questions:

If you answered “Yes” to any of the above questions, we may be able to assist you (based on investor or insurer guidelines on your loan). Please review the available options and complete the Workable Solutions Application to request assistance from our Workable Solutions team.

So, if you are irresponsible, you may be eligible for a better mortgage!


It’s the student loan program for irresponsible homeowners.

Michelle Malkin has more here.

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A few links to why/how/what should we do about the financial situation.

George Wil via Washington Post:

The essence of this crisis is lack of knowledge, including the inability to know who owes what to whom, and where risk resides. In such a moment, government’s speed should not vary inversely with its information. With government’s prestige, measured by approval ratings of the president and Congress, at a historic low, government is taking on unprecedented responsibilities. Henry Paulson, a.k.a. the Fourth Branch of Government, is intelligent and indefatigable and has as much pertinent experience as could be hoped for. But no one has ever had much experience that is pertinent to the tasks that would be assigned to him by the three-page legislation that would give him almost complete discretion over at least $700 billion

And Ron Paul via CNN:

I am afraid that policymakers today have not learned the lesson that prices must adjust to economic reality. The bailout of Fannie and Freddie, the purchase of AIG, and the latest multi-hundred billion dollar Treasury scheme all have one thing in common: They seek to prevent the liquidation of bad debt and worthless assets at market prices, and instead try to prop up those markets and keep those assets trading at prices far in excess of what any buyer would be willing to pay.

Fox News on Freddie and Fannie:

More here:

Michelle Malkin

Gateway Pundit

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Another pre-emptive race strike! Time Magazine’s Karen Tumulty has a nice little hit piece for the McCain campaign:

McCain Plays the Race Card

When politicians interject race into a campaign, they seldom do it directly. Consider McCain’s new ad, which the campaign says it will be airing nationally:

This is hardly subtle: Sinister images of two black men, followed by one of a vulnerable-looking elderly white woman.

Tumulty continues:

But this ad doesn’t even mention a far more significant tie–that of Jim Johnson, the former Fannie Mae chairman who had to resign as head of Obama’s vice presidential search team after it was revealed he got a sweetheart deal on a mortgage from Countrywide Financial.

Yet another example of the Obama Doctrine!

The Obama Doctrine

It is an enduring Democratic principle that this duty obligates the left to invent, anticipate and counter racial threats, using all elements of power, before the threats can do grave damage. The greater the threat, the greater is the risk of inaction – and the more compelling the case for taking anticipatory action to defend ourselves, even if uncertainty remains as to the time and place of the enemy’s attack. There are few greater threats than a racial attack. To forestall or prevent such hostile acts by our adversaries, the Democrats will, if necessary, act preemptively in exercising our inherent right of self-defense.

Tumulty’s argument centers around the omission of former Obama VP vetter Jim Johnson not being in the ad.  Why not the white guy, right?

Well, the McCain campaign released a Jim Johnson Obama video right after the Raines video.  OOPS!  Here’s the rip-off artist Johnson in his video:

And the McCain campaign’s response to the Time post:

The only problem with Ms. Tumulty’s story is that we also released an today targeting Senator Obama’s extensive ties to Jim Johnson. The ad is called…Jim Johnson. And Ms. Tumulty might have been aware of its existence if she’d bothered to call this campaign to find out the facts (reporting) before indicting us for racism in a half-baked, late night rant. Tumulty also takes Obama’s response, signed by Mr. Raines, at face value. The Obama campaign says Raines didn’t advise the campaign, and Tumulty apparently wasn’t interested in getting to the bottom of that either. So we contacted Ms. Tumulty and told her of the multiple sources that tie Raines to Obama, including three separate instances in the Washington Post, none of which was ever challenged by Raines or the Obama campaign until yesterday.

Get a Band-Aid! Ouch!

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According to Obama, these are all lies and distortions.

“That’s not country first, that’s Obama first!”

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The talking heads are doing major lip moving on the economy.  What has caused all of these huge institutions to fail?  Why now?  Was it the big Wall Street fat cats looking to gold-plate yet another bathroom fixture? Just one more Ferrari and I’ll be happy?

And what happened to my favorite house flipping shows?

The catalyst for the economic woes is the subprime lending mess.  Did you know Obama’s national finance chairwoman, Penny Pritzker, helped run a Chicago bank, Superior Bank, which preyed upon minorities with subprime lending?

Did you know the bank went out of business after falling 1 billion in debt?

And this from the same article:

As an owner and board chair of Superior, Penny Pritzker also was named in a RICO class action suit on behalf of the more than 1,400 depositors at Superior, who initially lost over $50 million of their life savings.

Remember, this is the woman who is Obama’s national finance chairwoman!

That’s just the tip of the iceberg.

John McCain in 2005:

Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.

Here are a few links to articles which are tying bad policies back to Obama:


The Best Congress Fannie Could Buy

McCain’s attempt to fix Fannie Mae, Freddie Mac in 2005; Update: Obama can’t get AIG right

More to come…

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