Dec. 31 (Bloomberg) -- Taxpayer losses from supporting Fannie Mae and Freddie Mac will top $400 billion, according to Peter Wallison, a former general counsel at the Treasury who is now a fellow at the American Enterprise Institute.
“The situation is they are losing gobs of money, up to $400 billion in mortgages,” Wallison said in a Bloomberg Television interview. The Treasury Department recognized last week that losses will be more than $400 billion when it raised its limit on federal support for the two government-sponsored enterprises, he said.
The U.S. seized the two mortgage financiers in 2008 as the government struggled to prevent a meltdown of the financial system. The debt of Fannie Mae, Freddie Mac and the Federal Home Loan Banks grew an average of $184 billion annually from 1998 to 2008, helping fuel a bubble that drove home prices up by 107 percent between 2000 and mid-2006, according to the S&P/Case- Shiller home-price index.
The Treasury said on Dec. 24 it would provide an unlimited amount of assistance to the companies as needed for the next three years to alleviate market concern that the government lifeline for Fannie Mae and Freddie Mac, the largest source of money for U.S. home loans, could lapse or be exhausted.
Lax regulation of Fannie Mae and Freddie Mac led to the mortgage companies taking on too many risky loans, Wallison said.
“It turns out it was impossible to regulate them,” he said. “They were too powerful.” He said no one knows how much will be needed to keep the companies solvent.
From 1990 to 1999, Wallison served on the board of directors of MGIC Investment Corp., the largest U.S. mortgage insurer, including a stint on the audit committee, according to Bloomberg data and company filings.
The continued government support of Fannie Mae and Freddie Mac makes buying their debt a good investment, Wallison said.
“It was always safe to buy these notes,” he said. The U.S. government was always going to stand behind them. They’re as good as Treasury notes.”
A blank check----Fannie and Freddie have taken the Ponzi scheme to a new level of systematic organized configuration robbery with a sanction fom our criminal government----the tax payers money is now at the disposal of the theives----risky and unethical behavior is rewarded by Obama and his henchmen----this is no different then given permission to a thief to pick your pocket----
ReplyDeleteDon't ever become sensitized to this criminal behavior----requital is coming.
The fleecing of the tax payers money by the most criminal government ever assembled in our countries history has now taken on a monstrous character, much like a frightening dream that usually wakes up the dreamer in a state of fright---the only difference is we are wide awake and the crimes are being perpetuated right in front of our eyes.
ReplyDeleteLed by Nazi Piglosi, Harry (night of the living dead) Reid and the cretin Barney (bend over and slam my buttocks hard, and it does not matter if it starts bleeding, just keep it hard like a broomstick and keep pounding away until I sequel like the pig that I am) Frank.
I do not hate liberals, I factor in that they are mentally challenged---but I do hate liberal/communist politicians---and if there is ever a time for payback for all the suffering they have caused families across the nation through the implantation of their communist manifesto policies that have cost these families their jobs---then each day at least 2 of the worst offenders should be shot---and I would fight hard, I would fight very hard to be one of the shooters---and through the force of my will I would compel the other shooters to fire at their legs and not at their heart, causing them prolonged suffering---just like their policies have caused so much suffering amongst the populace.
The Mob in it's heyday were like alter boys compared to these economic butchers.
" Government " run " ANYTHING " is " Government " run " DISASTERS ". The taxpayer has become a reasonable facsimile of what makes Barney Franks derriere raw.
ReplyDeleteClick here: YouTube - Barney Frank gives head to Batgirl - gotta love Congress .
The bravest, save the day and the night, and somtimes the future.
ReplyDeleteThe creator's of this site----give you the courage to not only dream, not only to hope, but to have have strong convictions that through their documentation and their expositions that the crooks from Obama on down will meet their personal jailer sooner rather then later---
This site's resolute, fearlessness, fortitude and endurance to get the truth out warrents a meritorous (THANK YOU) from everyone who visits this site.
Sorry-----I meant to include the staff also in my commendation of Idiots For Obama, especially the staff---you guys/girls are cream.
ReplyDeleteAh-----The detective's may be coming to the scene of the crime's of Obama and his Obamadites a little late, but their being driven inexorably to one conclusion. They have something in their possession that looks very like fingerprints, great big fat fingerprints, all over the crimes they have committed.
ReplyDeleteI've come to a conclusion---either the guility pay for their crimes or America is toast, and if that's the case then it's everyone for themselves---sadly, if it's the latter senario, then only the strong will survive with any degree of comfort-
I've already prepared for either senario, and every person should, if the crimes go unpunished, have a contingencey plan in place also.
Ever since this "trick" in the W. H. was elected, my 2-sided blue-print has become operational.
This is the thread, above all the other threads that have ever cropped up on this site, that should outrage one and all----the ramifications are stunning---
ReplyDeleteFannie and Freddie were just given a blank check---in essence---the government opened the tax-payers vault and basically said help your self to all you need, the tax payers are sheep and they are blindly compliant--------
I have all to do to keep my rage in check--in a bit of a stunner I thought this thread would bring out all the red, by the members of this site-----the government has just made it legal to rob you hard working tax payers---let the anger manifest in votes and enligtening other people about this craven robbery.