Congressional Committee to Recommend Abolishing Fannie Mae, Freddie Mac

by | Jan 23, 2010 | Headline News | 5 comments

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    Barney Frank (D-MA) has suggested that his committee may recommend the dissolution of the quasi-private Government Sponsored Entities Fannie Mae and Freddie Mac:

    Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee, said Friday he supports replacing the two companies entirely.

    “I believe this committee will be recommending abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance,” Frank said at a hearing on executive compensation issues. “That’s the approach, rather than the piecemeal one.”

    His comments show how much the financial crisis has upended the relationship between lawmakers and the two companies. Frank was long one of the staunchest supporters of Washington-based Fannie Mae and Freddie Mac, based in McLean, Va.

    Eliminating Fannie and Freddie is a great idea! Of course, if a politician’s lips are moving, he’s lying, so we need to be careful of what we wish for.

    A whole new system of housing finance will more than likely not be a free market solution, and will probably resemble the ideas being pushed forward for universal health care. Owning a house, like having health care, will be propagandized as a right for everyone, as opposed to a privilege for those who work hard, save and make the right decisions.

    Make no mistake; socialist will stop at nothing to gain control of every aspect of the American economy, including but not limited to, banking, mortgage lending, manufacturing, and health care.

    Under socialist/communist rule, Eastern European governments in the 1960’s through the late 1980’s had total control of housing, as well. And it was the government bureaucracy that determined what type of home you qualified for, where that home would be and what amenities you would have.

    The new system being proposed will probably be rooted in similar Marxist principles.

    Abolish Fannie Mae and Freddie Mac? Yes.

    Allow a socialist controlled Congress to implement a new system of housing finance? We are leaning towards a resounding no!

    It’s obvious that Chairman Frank has no clue what is really going on and how to effectively implement a fair, fiscally sound and free market efficient solution for housing.


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      1. Keep in mind the worlds despot dictators of the 20th century were low educated least likely to succeed people. Being bright and knowing what your doing doesn’t seem to be a prerequisite
        for the jobs they were  holding.

        The people in power today know exactly what they are doing.
        They may seem like nipple headed lunatics but they have a plan.

        An the plan is in motion and working. Will they succeed?
        They have come a long way in a short amount of time.
        They seem to do well in times of  chaos and there is plenty of that going around.

        So lets not let these people fool us by their stupidity. After all  they are in the lead right now.
        The scoreboard looks like this.
        Lunatics-1       John Q public-0

      2. Quote:”The people in power today know exactly what they are doing.”

        Agreed — I should have been more careful with my statement about Frank. While it seems to us that the decisions being made in Washington DC and other power centers are idiotic, it may very well be part of a greater plan.

        Perhaps Frank is clueless to his role within the system, though he believes otherwise. He may have honestly believed that no housing bubble was being created because he believed the BS he was being fed by others; you know, the ones that tell him what to do. And now, he may honestly believe that Fannie and Freddie must go and be replaced with a bigger behemoth that will be more effective. He may have a little more insight into a larger plan, but, like us, is merely a pawn. Though, he does get paid well and certainly has more benefits than the rest of us pleebs.

      3. Comments….. Why can’t the headline read:  The congressional ethics committee to recomend life in prison for treasonous behavior

      4.  Absolutely right! These people know exactly what they are doing. They couldn’t be that incompetant and still find their way to the bathroom when required. What they are doing is taking care of themselves, not “US”. Its about their Party, and their pockets, not the people.

        And Barney Frank? If the guy wasn’t in Congress he would probably be teaching civics …… at an all BOYS school!

      5. The financial problem with respect to Fannie Mae, Freddie Mac, FHA, HUD, and other such operations is the fact that the taxpayer is guaranteeing (insuring) these loans, and the taxpayer is now on the hook for the MBS, CMO’s, derivatives, and all other financial products offered by the banks.

        If the Big Commercial Banks and Investment Banks would have been required to shoulder the risk for their financial products you can bet the house, (pun intended) that they would have created safe financial products and correctly mitigated their risks. Instead, they took the profit and saddled the taxpayer with the risks.

        Glass Steagull should be reimposed and the major banks divided into comercial banks and investment banks with the shareholders bearing the risk of failure, not the taxpayer. The CEO’s of these Agencies need to go to JAIL!

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