Fed grabs Fannie
Posted September 7th by Pamela Hennessy in Federal Reserve, Opinion, Why the Government Sucks, economy
For those of you playing along at home, please put your game piece into the “Will Not End Well” spot on the game board. The fed has just taken over Freddie Mac and Fannie Mae — the mortgage granting institutions that account for almost half (yes, half) of all home mortgages in the United States of America.
MSNBC reports that “Both companies were placed into a government conservatorship that will be run by the Federal Housing Finance Agency, the new agency created by Congress this summer to regulate Fannie and Freddie.”
Lovely.
These two bail-outs will cost American taxpayers billions upon billions of dollars. You overlay that on a completely stagnant real estate market, soaring fuel and food prices, drops in employment and the spiraling-to-a-fiery-death US dollar and you surely have a cocktail for complete and utter failorama.
Why?
Ask yourself if the Federal government is alltruistic. Ask yourself if they are competent. Then, ask yourself if these are truly the people you want firmly gripping the financial testicles of American home-owners. Are they the people you want bailing out flubbed corporations on your dime?
Gads.
