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Terri
08-04-2008, 09:21 AM
By Star Parker
August 4, 2008

A key feature of the housing bill that President Bush just signed into law was the federal bailout of Fannie Mae and Freddie Mac.

These are the two taxpayer backed "Government Sponsored Enterprises" that own or guarantee almost half of all mortgages in the country.

Of the many words written about this bailout, those in a New York Times op-ed by William Poole, former head of the Federal Reserve Bank of Saint Louis, contain one of the most relevant and powerful messages:

"Critics of the congressional housing package complain that we are now committing taxpayers to huge new outlays to rescue Fannie Mae and Freddie Mac. That view is wrong: Congressional inaction over the past 15 years had already committed taxpayers to the bailout."

More (http://www.gopusa.com/commentary/sparker/2008/sp_08041.shtml)

KathrynSmith
08-04-2008, 10:11 PM
Gigot also points out that, despite the rationale that we allegedly need these taxpayer-backed enterprises in order for those of modest incomes to get mortgages, in 2002, Fannie Mae "was able to pay no fewer than 21 of its executives a million dollars," and in 2003, its CEO, Franklin Raines, who was ousted for financial shenanigans at the firm, was paid $20 million. And, he left with a $25 million retirement package.
snip
Raines is reported to be currently serving as an informal adviser to the Obama campaign on housing and mortgage issues.

The company he keeps!