TAKE A LOAD OFF YOUR FANNIE & FREDDIE

AND YOU PUT THE LOAD RIGHT ON ME AND OTHER TAXPAYERS!

Amazing about how mum the major media outlets have been when it comes to another taxpayer bailout. I'm talking about the continuing taxpayer bailout of Freddie Mac and Fannie Mae. Here are the money quotes literally:

"WASHINGTON (AP) - Government-controlled mortgage buyer Freddie Mac managed a narrower loss of $1.7 billion for the October-December quarter of last year. But it has asked for an additional $500 million in federal aid—up from the $100 million it sought in the previous quarter. Freddie Mac also posted a $19.8 billion loss for all of 2010."

"The government rescued Freddie Mac and sibling company Fannie Mae in September 2008 to cover their losses on soured mortgage loans. It estimates the bailouts will cost taxpayers as much as $259 billion."

So who is responsible for this mess. A lot of people especially "Bailout" Barney Frank and a lot of other Democrats like Maxine Walters, Ralph Meeks, and others "roll the videotape":


But, above it all there is the audacity of Barney Frank:

Socialism comes to Wisconsin Ave.

So much for the Republican idea of free markets. Now that the Bush administration is using our taxpayer dollars to bailout Fannie Mae and Freddie Mac and the mainstream media refuses to look any deeper than the headlines to find out how this happened. This has all the look of a problem that is attempting to be swept under the rug. Here are some of the money quotes:

"There is no guarantee that the takeover will work, and it comes at a potentially massive cost to taxpayers. The government has pledged to inject money in the companies in any quarter in which they would otherwise be insolvent -- up to $100 billion in total for each company. "

How nice! No guarantee that after spending up to 200 billion that this may not work. If somebody in congress proposed such legislation would Bush sign it?

"Paulson also announced a separate program in which the government will start buying securities backed by mortgages -- $5 billion worth, initially. That will, in effect, subsidize the purchase of homes by lowering the interest rate that buyers must pay for a mortgage."

Why do we taxpayers have to be the only ones to buy these mortgage backed securities? Paulson should have made all those banks and institutions who gave out the loans to unqualified home buyers and illegal immigrants and then bundled them into securities be required to buy these mortgage backed securities on a 50 50 basis. Why not they caused this problem in the first place they need to share the pain of the recovery not just us taxpayers.

U.S. Taxpayers about to get smacked in the Fannie Mae

I traveled from St. Paul to Washington on Friday and opened the paper Saturday to bad news. It had all the earmarks of a taking out the trash news release. News that the U.S. Government aka the U.S. taxpayers were going to take over and bailout the two quasi private mortgage agencies Fannie Mae and Freddie Mac. This is real bad news that's why it is in the Saturday papers and on a day when a tropical storm was heading up the east coast. Hold on to your wallets as once again more money is flowing out to bailout people like illegal immigrants and others who should not have gotten a mortgage but, should not have been in this country in the first place.
Here are some of the money quotes:

"For years, they played high-profile roles in the political and civic life of Washington, hiring armies of lobbyists to help protect their unique status and, through foundations, giving vast amounts of money to charities large and small. That began changing with a series of accounting scandals beginning in 2003. The housing crisis raised more questions about their structure and operations."

Were was the in depth reporting of the mainstream press when this was going on? Following the antics of Britney Spears no doubt!

"It's a case where market psychology became more important than the fundamentals, and that's why they had to act," said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee"

Huh? Fundamentals are good but, investors are scared so let the taxpayers pay billions to make sure these "investors" sleep well tonight but taxpayers will be paying for years. I smell something fishy going on.

Fear, greed and tears

"The Federal Reserve cut a short-term interest rate yesterday to try to keep problems in the housing and mortgage markets from dragging the nation into recession, but Wall Street judged the move as too timid and financial markets tanked. "-Washington Post

Only on Wall Street can good news be looked on as bad news because greed seems to know no bounds. Meanwhile:

"The chief executives for two of the nation's dominant mortgage-finance companies traveled to Wall Street yesterday and delivered competing words of regret for having to take painful steps to shore up their businesses.
The two government-chartered firms recently cut the dividends they pay shareholders and borrowed billions of dollars of relatively costly capital to stay in compliance with regulatory requirements and ride out the turmoil in the housing market.
"We wanted to dilute the common shareholders like we wanted to shoot ourselves in the head with a gun," Richard F. Syron, Freddie Mac chairman and chief executive, told a gathering of investment analysts.
"I wanted to cut off both my arms, and both my legs, and my head and my kidney," Fannie Mae chief executive Daniel H. Mudd said later in the day. "

TRANSLATION: We felt bad all the way to our second homes.