$19 billion more down the Fannie Mae black hole - That's OK, as long as Barney Fwank and Herb Moses of Fannie Mae are protected
CB
And that's in addition to the $400 billion we've already poured into the
bottomless pit of Fannie Mae and Freddie Mac.
Joe Weisenthal at Clusterstock believes this story is not getting the
attention it merits because it doesn't fit the anti-capitalist narrative the
media has created and that too many Democrats with ties to the mortgage
giants are in powerful positions:
The problem is that the Fannie and Freddie disasters don't fit into any
conventional media narrative. At AIG you had Joe Cassano, lurking in the
shadows, turning AIGFP into his own personal casino, while taking home
gargantuan pay.
Fannie Mae? They help nice families get into homes. Their motto is
something about helping the people who help house America. Who could be
against that? Plus, the Fannie and Freddy story doesn't help explain the
idea that laissez-faire deregulation is what allowed Wall Street to go
crazy. Fannie and Freddy had their own freakin' regulator, OFHEO. Two
companies with one regulator to look into both of them.
And then you have all the Democrats on the inside (Rahm Emanuel, for
example) on the outside (Barney Frank), who have ties to the company's worst
years.
If AIG (AIG) ever has to ask for one more dollar to pay counterparties
like Goldman Sachs (cue the ominous music!), there'll be a fresh round of
media outrage. Fannie and Freddie continue to blow through cash though, and
it goes without a peep, depriving the public insight into one of the more
important aspects of the housing bubble and the crisis.
Congress has created a commission to look into the mortgage collapse. I
wonder how closely they'll look at the doings of the two mortgage giants?
http://www.americanthinker.com/blog/2009/05/19_billion_more_down_the_fanni.html
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CB
Asking congress to look into why Fannie Mae failed is like asking Barney
Fwank to explain his personal relationship with Fannie executive Herb Moses.
"I am for doing good to the poor, but I differ in opinion of the means. I
think the best way of doing good to the poor, is not making them easy in
poverty, but leading or driving them out of it. In my youth I travelled
much, and I observed in different countries, that the more public provisions
were made for the poor the less they provided for themselves, and of course
became poorer. And, on the contrary, the less was done for them, the more
they did for themselves, and became richer."
-- Benjamin Franklin, /The Encouragement of Idleness/, 1766