By Rod Sterling
Daniel Mudd took 90 million out of FNMA while heading it up. He is the son of Roger Mudd and probably a descendant of Dr. Samuel Mudd. He referred to FNMA as "my company" and several times called it a "family." Whenever I hear some company, let alone a government sponsored entity call itself a family, I look around for a rectal chastity belt.
Even though I am totally lost in this labyrinth of government meddling, I am going down as opposed to the bailout. It was caused by government meddling in the first place and I doubt that more government meddling will correct the mistakes. That is especially true when the same assholes that created the mess are involved in the correction: Barney Frank, Chris Dodd, Andrew Cuomo (McCain should back off appointing him to anything), Barack Obama (in later years) Bill Clinton and John Kerry. (Dodd, Obama and Kerry are the top three recipients of political contributions from FNMA).
How crucial could it have been that both houses shut down for the Jewish holiday? How many of them are even Jewish? 10%? 15%? I can remember spending an 8 hour shift from 4 AM to Noon pulling guard duty around jet fighters in France on Christmas morning of 1959. And that was peacetime. Did the G.I.s in Iraq get the Jewish holiday off? Even the Jewish kids probably did not. I suppose we're lucky they did not drag it out until Kwanzaa.
The dems keep saying "Let's not play the blame game." Of course they are saying it. They are to blame! It was not both parties! It was the dems. George Bush, who has been the butt of every "stupid" joke for years, has been warning against Freddie and Fannie since his first year in office. John McCain has been warning about the potential, now actual, crisis for at least the last four years. Alan Greenspan several times warned against their methods (though he was unable to convince that bitchy wife of his).
And if I have to hear one more talking head refer to the miscreants who put this together as "well-intentioned" I will puke! They were not well intentioned, they were catering to a political block to stay in office.
I want to start taking up a collection to pay for Nancy Pelosi's frontal lobotomy and taxidermy for Harry Reid.
The Trump Dream Team
17 hours ago
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Check out this article from the NY Times in 1999. Is there a root to the sart of this mess?
September 30, 1999
Fannie Mae Eases Credit To Aid Mortgage Lending
By STEVEN A. HOLMES
ln a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program bynext spring.
Fannie Mae, the nation's biggest underwriter of home mortgages, has been UNDER INCREASING PRESSURE FROM THE CLINTON ADMINISTRATION to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.
"Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements," said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. "Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market."
Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.
IN MOVING, EVEN TENTATIVELY, INTO THIS NEW AREA OF LENDING, FANNIE MAE IS TAKING ON SIGNIFICANTLY MORE RISK, WHICH MAY NOT POSE ANY DIFFICULTIES DURING FLUSH ECONOMIC TIMES. BUT THE GOVERNMENT-SUBSIDIZED CORPORATION MAY RUN INTO TROUBLE IN AN ECONOMIC DOWNTURN, PROMPTING A GOVERNMENT RESCUE SIMILAR TO THE SAVINGS AND LOAN INDUSTRY OF THE 1980’S.
"From the perspective of many people, including me, this is another thrift industry growing up around us," said Peter Wallison a resident fellow at the American Enterprise Institute. "IF THEY FAIL. THE GOVERNMENT WILL HAVE TO STEP UP AND BAIL THEM OUT THE WAY IT STEPPED UP AND BAILED OUT THE THRIFT INDUSTRY."
Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7 .76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.
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