The End Of The American Dream
By Star Parker
February 23, 2009
Page 2 of 2
Could we have had this housing disaster without Fannie Mae and its brother Freddie Mac? Certainly not.
Why would a mortgage originator sell a mortgage that couldn't get paid back? Only if it could be re-sold to taxpayer backed Fannie or Freddie.
Both went belly up last year and put under explicit government control. Their five trillion dollars in debt went right onto us taxpayers, doubling the outstanding debt of the US government.
Now President Obama is "solving" our mortgage crisis by adding another $200 billion of taxpayer guarantees behind these two entities and, for the first time, allowing them to guarantee mortgage refinancing for more than 80 percent of the home value.
And those who can't make their mortgage payments will be subsidized by taxpayers to the tune of $75 billion so they can.
A failure of capitalism? This could never happen in a country where private property was respected and people were not subsidized by government to buy what they can't afford.
Rather than saving the American dream, the Obama team could be bringing it to an end.
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Star Parker is an author and president of CURE, Coalition on Urban Renewal and Education (www.urbancure.org). She can be reached at parker@urbancure.org.
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Note -- The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA. >> Back -- Page 1 2
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