I’m not in a writing mood today but I hate to leave this page silent so I thought I’d share a few must reads on the Fannie Mae & Freddie Mac bailout with you. First is the Op Ed by John McCain in today’s Wall Street Journal:<\/p>\n
We’ll Protect Taxpayers From More Bailouts<\/strong>
\nBy John McCain and Sarah Palin, September 9, 2008<\/p>\nThe bailout of Fannie Mae and Freddie Mac is another outrageous, but sadly necessary, step for these two institutions. Given the long-term mismanagement and flawed structure of these two companies, this was the only short-term alternative for ensuring that hard-working Americans have access to affordable mortgages during this difficult economic period.<\/p>\n
We are strong advocates for the permanent reform of Fannie and Freddie. For years, Congress failed to act and it is deeply troubling that what we are now seeing is an exercise in crisis management rather than sound planning, and at great cost to taxpayers.<\/p>\n
We promise the American people that our administration will be different. We have long records of standing up to special interests and providing the leadership to change government and make it more accountable to the American taxpayer. In our administration, every agency and department will undergo rigorous oversight and review. We will require the highest standards of accounting, reporting and transparency ever demanded in government. Read the rest…<\/a><\/p><\/blockquote>\n
The second is Fred Thompson’s column in the September issue of Townhall Magazine:<\/p>\n
The Dangers of Government Guarantees<\/strong>
\nby Fred Thompson, Townhall.com<\/p>\nI\u2019ll bet it came as a surprise to most folks that the financial stability of the world as we know it depends upon the survival of a couple of outfits called Fannie Mae and Freddie Mac. Yet that\u2019s what the so-called experts are telling us. Moreover, we taxpayers are now being asked to guarantee Fannie and Freddie\u2019s tab, one that could make the $124 billion S&L bailout of the late 1980s look cheap.<\/p>\n
So how did we get stuck with this bill? Well, Congress wanted to \u201cdo something\u201d about what it saw as a \u201chousing problem.\u201d To them that meant that they should create an even bigger problem.<\/p>\n
So Congress passed laws that made it easier for hopeful home-buyers to buy houses \u2026 even when they couldn\u2019t afford them. Then the Fed and other regulators helped, in the form of easy money and loose credit standards for mortgages. Read the rest…<\/a><\/p><\/blockquote>\n
And the last is from the Competitive Enterprise Institute<\/a>‘s OpenMarket Blog:<\/p>\n
Are Reporters Financially Illiterate? Fannie and Freddie Are Called \u201cGovernment-Sponsored Enterprises\u201d for a Reason<\/strong>
\nPosted by Hans Bader<\/p>\nRight now, the federal government, at a huge cost to taxpayers of perhaps $100 billion, is bailing out the two government-backed mortgage giants, Fannie Mae and Freddie Mac \u2014 the so-called GSEs.\u00a0 \u201cGSE\u201d stands for Government-Sponsored Enterprise.\u00a0 But some reporters are financially-illiterate, because if you point out the obvious \u2014 that the GSEs are going to cost taxpayers billions \u2014 reporters will condescendingly \u201ccorrect\u201d what you said, by insisting that they are completely \u201cprivate sector\u201d entities (false) that have yet to cost taxpayers a dime (false).\u00a0\u00a0 (Back in July, the predicted cost to taxpayers of a bailout was already over $25 billion, according to the Congressional Budget Office.\u00a0 The cost could be up to $300 billion.\u00a0 Moreover, the GSEs already \u201creceive an estimated $10 billion a year in hidden taxpayer subsidies\u201d). Read the rest…<\/a><\/p><\/blockquote>\n
The bottom line on all this seems to be every time congress gets a brilliant idea we get screwed… I mean stuck with the bill.<\/p>\n","protected":false},"excerpt":{"rendered":"
I’m not in a writing mood today but I hate to leave this page silent so I thought I’d share a few must reads on the Fannie Mae & Freddie Mac bailout with you. First is the Op Ed by John McCain in today’s Wall Street Journal: We’ll Protect Taxpayers From More Bailouts By John […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26,7],"tags":[113,115,114,40,83],"class_list":{"0":"post-332","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy","7":"category-politics","8":"tag-fannie-mae","9":"tag-fred-thompson","10":"tag-freddie-mac","11":"tag-john-mccain","12":"tag-sarah-palin","13":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfpI7-5m","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":664,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/10\/06\/finally-mccain-blasts-obama-democrats-for-fanniefreddie-meltdown\/","url_meta":{"origin":332,"position":0},"title":"Finally: McCain Blasts Obama, Democrats for Fannie\/Freddie Meltdown","author":"Jeff","date":"October 6, 2008","format":false,"excerpt":"Update: Scroll down for the video. It looks like the gloves are really off, John McCain is going to finally start talking about the economy and going after Barack Obama and Democrats for their roll in the failure of Fannie Mae and Freddie Mac. Our current economic crisis is a\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":317,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/09\/08\/the-gaffe-that-wasnt\/","url_meta":{"origin":332,"position":1},"title":"The Gaffe That Wasn’t…","author":"Jeff","date":"September 8, 2008","format":false,"excerpt":"The Huffington Post is reporting that Sarah Palin has made her first gaffe: Gov. Sarah Palin made her first potentially major gaffe during her time on the national scene while discussing the developments of the perilous housing market this past weekend. Speaking before voters in Colorado Springs, the Republican vice\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":562,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/10\/01\/flamethrower-thaddeus-mccotter\/","url_meta":{"origin":332,"position":2},"title":"Flamethrower: Thaddeus McCotter","author":"Jeff","date":"October 1, 2008","format":false,"excerpt":"It's pure unadulterated demagoguery but it's still a hell of speech! With all due respect Congressman Wall Street didn't cause this problem... They played their part but it was Congress and government regulators who, in the name of affordable housing, compelled banks to write these risky sub-prime loans. It was\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2486,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/07\/07\/anatomy-of-a-crisis-the-fannie-mae-and-freddie-mac-debacle\/","url_meta":{"origin":332,"position":3},"title":"Anatomy of a Crisis: The Fannie Mae and Freddie Mac Debacle","author":"Jeff","date":"July 7, 2009","format":false,"excerpt":"Republican members of the House Committee on Oversight and Government Reform have released a report analyzing the role of the government sponsored enterprises (GSE), Fannie Mae and Freddie Mac, in the housing meltdown. You can read the full report here, but here are the highlights: Political pressure led to the\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2443,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/06\/24\/barney-franks-bad-idea\/","url_meta":{"origin":332,"position":4},"title":"Barney Frank’s Bad Idea","author":"Jeff","date":"June 24, 2009","format":false,"excerpt":"From the Wall Street Journal: Back when the housing mania was taking off, Massachusetts Congressman Barney Frank famously said he wanted Fannie Mae and Freddie Mac to \"roll the dice\" in the name of affordable housing. That didn't turn out so well, but Mr. Frank has since only accumulated more\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":587,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/10\/02\/in-thier-own-words-what-they-said-about-fannie-freddie\/","url_meta":{"origin":332,"position":5},"title":"In Their Own Words: What They Said About Fannie & Freddie","author":"Jeff","date":"October 2, 2008","format":false,"excerpt":"The Wall Street Journal has a long history over covering the abuses of Fannie Mae and Freddie Mac today\u00a0 they're naming names and calling out the Democrats who helped cause our financial crisis. House Financial Services Committee hearing, Sept. 25, 2003: Rep. Gregory Meeks, (D., N.Y.): . . . 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