Freddie, Fannie And Friends

The wonderful world of our capitalist society, small c for the few that capitalize!

With trouble brewing inside mortgage giants Freddie Mac and Fannie Mae, Armen Keteyian reports that the nation is learning more and more about the companies and their friends in high places.

It was during the Great Depression that Fannie Mae was founded - in 1938 - with a simple purpose in mind: to give lower and middle income Americans more access to the Great American Dream, owning your own home.

It did it by guaranteeing if a homeowner defaulted on a loan the bank would get paid, CBS News chief investigative correspondent Armen Keteyian reports.

The American way, on paper and in words, but:

"You'd have people in Congress that would make it very clear that they wanted nothing to touch Fannie and Freddie," Leach said.

And as Robert L. Borosage says, over at Huffington:

Wall Street Socialism

That's right. If the guarantees work, private speculators, having driven the stock down, will clean up on the upside. And the bank's CEO's will continue to pocket the multi-million dollar salaries. Call it Wall Street socialism. Their losses are socialized; their profits are pocketed. You and I will pay for their failures. And if conservatives have their way, their families will pocket their successes, without even having to pay a tax for the transfer of the estates we've helped to create.

For not only Fanny and Freddie but across the board, reaping more take off the smaller investor than they get and taking all of us to the cleaners.

And with the trickle down taxcuts what do they do to avoid those smaller amounts required by them them:

Super Rich Tax Cheats Outed by Bank Clerk
Technician in Liechtenstein Turns Over Names of Americans With Secret Bank Accounts

Hundreds of super-rich American tax cheats have, in effect, turned themselves in to the IRS after a bank computer technician in the tiny European country of Liechtenstein came forward with the names of US citizens who had set up secret accounts there, according to Washington lawyers investigating the scheme.

They're going after him as a Thief!

And he may be of Criminal mind just trying to make a huge buck off of the lists, and not just a concerned human!

If that be the case than What Does It Say About Those Hiding Their Wealth!

Seems than he's just Playing the Game they Started!!!!!!!!!

He is now in hiding but scheduled to testify to the Senate's Permanent Subcommittee on Investigations Thursday via a video statement from a secret location, according to Congressional investigators.

What are the expectations that might come out of these hearings, any perp walks, pay back taxes owed plus, we'll see.

But I can't hold my breath forever!

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I have read that there was a good deal of pressure on Fannie and Freddie to become the guarantors of all mortgages--esp. Fannie Mae which traditionally had a cap on the price of a loan they would guarantee. It seems though that the management has been somewhat resistant to assuming the bad loans even after the guidelines were lowered. I am hazy on this, but if you or someone is pursuing the question it might prove a lead to follow.

Loading all the bad debt on Fannie Mae and then guaranteeing it is a bailout for the big guys and it is also a way of destroying their real function of making housing available for lower income folks.

Some years ago the previous CEO was outed on charges of misconduct. I wonder if that was a fair rap or if it was a Bush machination to put their own guys in.

carol

Fannie, Freddie spent $200M to buy influence

Fannie and Freddie's political contacts exist deep in the two presidential campaigns.

At least 20 McCain fundraisers have lobbied on behalf of Fannie Mae and Freddie Mac, netting at least $12.3 million in fees over the past nine years.

Political insiders Arthur B. Culvahouse Jr., picked by McCain to vet his vice presidential nominees, and Jim Johnson, picked by Obama to perform the same function, once worked for the mortgage giants.

And for years, Rick Davis served as president of an advocacy group led by Fannie Mae and Freddie Mac that defended the two companies against increased regulation.

So far this election cycle, Freddie Mac's political action committee and employees have contributed $555,567 to Senate and House candidates, and Fannie Mae's PAC and employees have given more than $1.1 million, according to the Center for Responsive Politics.

McCain Uses POW Status as Sword & Shield

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