The way it was all going down last week and over the weekend you’d think that NO ONE had any idea that there was a problem with Fannie Mae and Freddie Mac before the whole “mortgage crisis” started going down. Except for the fact that there were some regulators and Republican congressmen who tried to put some regulations in place that would “Sarbanes-Oxley” Fannie Mae and Freddie Mac. Other congress members, it seems, were only interested in sweeping these problems under the carpet. In fact, these congress people attempted to trash the regulator rather than respond to and correct the issues that the regulator raised.
8 minutes of video follow, but it’s well worth the time.
Tell me, what was it that Frank Raines, Barack Obama’s future economic advisor, said about these loans…?
There aren’t any banks who only have single-family and multi-family loans. These assets [single-family and multi-family homes] are so riskless that their capital for holding them should be under 2%.
These are the same “riskless” assets that have, in part, resulted in the current mortgage crisis.
Let’s just say that my faith in a “government of the people, by the people, and for the people” remains tenuous.
Seems to me that the “Fannie” that our government is trying to cover has very little to do with mortgages and a whole lot to do with asses. Especially those asses who are presently up for re-election.