Any oversight by Office of Federal Housing Enterprise Oversight - www.ofheo.gov?

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  • Posted on: 7 September 2008
  • By: luaptifer

Bumped. -- GH Originally posted 2008-09-07 13:11:07 -0500.

Now that taxpayers are about to pick up the tab on another megabillion dollar problem of the Bush Administration, I have some questions. Note: this commentary began its life just moments ago as a comment on Taxpayers picking up the tab again

--- Ever since I've known of this office, I've wondered if they have actually done any oversight of Fannie Mae and Freddie Mac.

What do they do? And how'd Mike Connell get the job of running their website back in 1999? Does George W. Bush get some sort of inside information from this arrangement?

Connell has been Bush's IT guru for more than two decades now. It became a GovTech Solutions website after he created the company to launder NewMedia Communications as a 'non-partisan' company while he ran GeorgeWBush.com and RNC.org, and it still runs as a GovTech Solutions client today.

You can see some of the pages under development as google captured them using this link:

Google - "inurl:govtechsolutions.com"

You also can see that www.ofheo.gov runs from the IP address right next door to govtechsolutions.com on Smartechcorp's address space:

http://www.robtex.com/dns/www.ofheo.gov.html

http://www.robtex.com/dns/govtechsolutions.com.html

and they're all in the same block of IP address that runs Connell's technomania.com (though robtex has not apparently updated its cnet data lately)

http://www.robtex.com/cnet/64.203.97.html

Since taxpayers are now going to pick up the tab for Fannie Mae and Freddie Mac and we've been picking up the tab for OFHEO, I just wonder if there is any significance to the fact that we've also been paying Mike Connell's companies to do the web and database work that runs http://www.ofheo.gov?

What does OFHEO do, anyhow? Just wondering, ya know?

 

Comments

...is how we are going to pick up the tab, after 8 years of sanctioned corporate theft, specious White House denial, and GOTV tax relief.

Macroeconomics is complex, and in fact not really all that well understood. But there are some basic truths, like not pissing away a federal budget surplus while preparing to wage war. First principles are inescapable: can't quit your job, buy a new Hummer on credit, and blow your inheritance on a bitchin' kegger to celebrate.

And yet starting this week, Fannie Mae and Freddie Mac will be backed by the United States federal government. Backed with what?

With 10 bank closures already this year, the FDIC recently raised the number of banks on its "problem" list from 90 to 117. -- that's a 30% increase -- and Q2 bank earnings dropped 86% compared to last year.

But also in Q2, the FDIC insurance fund, i.e. the actual money that protects depositors, lost $8 billion dollars. That's a 15% decrease in 3 months.

FDIC chair Sheila Bair expects banks will have to "start paying higher premiums to replenish the fund" but believes the banking industry will "step up to the plate."

Because financial institutions historically do the right thing under pressure? Because banking executives will embrace the wisdom of increasing their costs while profits are down 86%?

But perhaps the scariest revelation about the surety of anything backed by our federal government is summarized in this AP release from last Friday:

"Transportation Secretary Mary Peters says the federal highway trust fund will run out of money this month...[T]he agency will have to delay payments to state road and bridge projects that the federal government is helping finance...[Peters] wants Congress to pass legislation that includes $8 billion to help cover the shortfall.

In other words, the same government guaranteeing our reeling financial sector, and that on Monday will pull about half the nation's home loans under its protective wing, can't afford to fix the roads.

With soaring gasoline prices and no energy policy, what will be the effect on inflation, of defaulting on loans to fix our critical infrastructure already in desperate need of repair?

And these days, is it even the least bit meaningful to be "backed by the federal government?"

--

stopped, suddenly, and all of the bills came due simultaneously.

FDIC chair Sheila Bair expects banks will have to "start paying higher premiums to replenish the fund" but believes the banking industry will "step up to the plate."

Because financial institutions historically do the right thing under pressure?

And to think that the $100,000 of insured deposit that is guarenteed by FDIC is something that the banks voluntarily step up to take care of, THAT is a scary thing.

So if some day, they decided "We're gonna be aholes today just cause the world's looking like an ugly place. Someone else can step up in my place.",just who are the next volunteers ready to cover that guarentee?



"So your party is the only party that can save the country from the mess that your party created?" - attrib. Jon Stewart

-----
"I hope we shall crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government in a trial of strength, and bid defiance to the laws of our country." - Thomas Jefferson

In other words, the same government guaranteeing our reeling financial sector, and that on Monday will pull about half the nation's home loans under its protective wing, can't afford to fix the roads.

With soaring gasoline prices and no energy policy, what will be the effect on inflation, of defaulting on loans to fix our critical infrastructure already in desperate need of repair?

and that are discussed above depend upon the assumption that the US Government will retain the confidence of the world who'll continue buying our debt. That confidence assumes the contract still works where Americans will continue to pay their taxes.

What if the taxpayer becomes unable to meet the terms of that contract? It's seeming a less unlikely prospect, now, than just a few weeks ago.



"So your party is the only party that can save the country from the mess that your party created?" - attrib. Jon Stewart

-----
"I hope we shall crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government in a trial of strength, and bid defiance to the laws of our country." - Thomas Jefferson