Fannie Mae and Freddy Mac are the two most highly illegal centers for redistribution of wealth in America today. Protected by the Obama Administration; ignored by Republicans.

Here, a little history: The original $400 billion bailout of Fannie Mae and Freddie Mac (July of 2008) occurred as a result of the Subprime Mortgage Crisis.

Although President Bush warned as early as the fall of 2001, and again in 2006, of a coming crisis at the two GSEs, Congress refused to listen. When President Bush suggested that subprime mortgages could negatively affect Fannie and Freddie, Christopher Dodd, Chairman of the Senate Banking Committee, and Barney Frank, Chairman of the House Financial Services Committee, thought they were not seriously threatened. And they still think they are not threatened!

[ http://www.youtube.com/watch?v=cMnSp4qEXNM&NR=1 ]

In early 2008, the Federal Reserve began guaranteeing loans to Bear Stearns and other banks to prevent an all-out financial failure. Soon Fannie and Freddie stepped in to guarantee even more loans. However, Fannie and Freddie had to answer to stockholders. When they panicked, the Feds (not Congress) realized they would need to step in to rescue Fannie and Freddie themselves.

In July of 2008, Congress did approve a bailout plan for mortgage companies Fannie Mae and Freddie Mac. The plan allowed the U.S. Treasury Department to guarantee as much as $400 billion in loans held by the two corporations, who hold or guarantee more than $5 trillion, or half, of the nation’s mortgages. However, Wall Street’s fears that these loans would default caused Fannie’s and Freddie’s shares to tumble, making it more difficult for the private companies to raise additional capital themselves.

The bailout included:

  • Approval for the Federal Housing Administration (FHA) to guarantee $380 billion in new loans to keep 400,000 homeowners out of foreclosure
  • $5 billion in CDBG grants to help homeowners in poor neighborhoods.
  • Approval for the Treasury Department to buy shares of Fannie and Freddie’s stock to support stock price levels and allow the two to continue to raise capital on the private market.
  • About $15 billion in housing tax breaks, including a credit of up to $7,500 for first-time buyers.
  • An increase in the statutory limit on the national debt by $800 billion, to $10.6 trillion.
  • A new regulatory agency to oversee Fannie and Freddie, including executive pay levels.

In testimony before a House Financial Services Committee subcommittee on June 3, 2009, Federal Housing Finance Agency Director James B. Lockhart III presented his report, “The Present Condition and Future Status of Fannie Mae and Freddie Mac”

Highlights of the report included:

  • The Treasury Department’s commitment to fund up to $200 billion in capital for each Enterprise is expected be sufficient.
  • The Enterprises own or guarantee 56% of the single family mortgages in this country, or $5.4 trillion of the total $11.9 trillion in outstanding mortgage debt.
  • Their combined share of mortgages originated in the first quarter of 2009 was 73 percent.
  • Private-label mortgage-backed securities (PLS) are a major driver of Enterprise losses.
  • Both Enterprises are heavily involved in planning and implementing the Making Homes Affordable and the Home Affordable Refinance programs.

The report further noted:

In March of 2009, Treasury Secretary Timothy F. Geithner was forced to acknowledge before the Congress that it was “very hard to judge what the scale of losses is.” The companies’ first- quarter regulatory filings said that, at the end of March, borrowers were late making payments on $338.4 billion worth of loans, up from $206.1 billion a year earlier.

According to market analysts, it was difficult to estimate the depth of the hole the two companies had fallen into as it depends on unemployment, interest rates, and other factors that affect home prices.

Analysts at Barclays Capital Inc. had estimated $500 billion in a prior December report. They said the default could be more, if housing prices drop further. On the other hand, the White House’s Office of Management and Budget estimated in February of 2009 that the required aid could total as little as $160 billion if the economy strengthened.

On June 16, 2010, it was announced that the two Government-Sponsored Enterprises (GSEs) would have their shares delisted from the NYSE.

[WASHINGTON, Jun 16, 2010 (UPI via COMTEX ) — The Federal National Mortgage Association Wednesday notified New York and Chicago stock exchanges of its intention to delist its stock due to low prices.]

Fannie Mae said it also had filed notification with the Securities and Exchange Commission of its intention to delist common and preferred stock, a move prompted by the New York Stock Exchange, which informed Fannie Mae on June 15 that it no longer met minimum standards on prices to maintain a presence on the exchange.

Currently, Sean Egan, president of Haverford, Pennsylvania-based Egan-Jones Ratings Co., feels the two companies could be forced to write off at least 20 percent of their loans and guarantees, or $1 trillion in “a reasonable worst-case scenario,” if the housing market continues to weaken.

The future of the housing finance system is being debated by lawmakers. There are any number of worst cases and best cases that could occur to both companies. All that’s clear from the de-listing announcements is that Fannie Mae and Freddie Mac are on ice that has now been officially acknowledged to be very thin.

Meanwhile, the Obama administration is delaying action on Fannie Mae and Freddie Mac to keep losses off the government’s books. Adding possibly more than $1-trillion in additional US debt.

So, what are you going to do about it, madam senator? Or you, mister representative? Or you, President Obama? If history prevails, NOTHING, NOTHING, AND NOTHING!

Memo to all fiscally responsible Americans: CONTACT YOUR SENATORS AND REPRESENTATIVES AND TELL THEM TO WAKE UP!

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Robert A. Hall is a Marine Vietnam veteran who served five terms in the Massachusetts State Senate.

I’m 63.  Except for one semester in college when jobs were scarce and a six-month period when I was between jobs, but job-hunting every day, I’ve worked, hard, since I was 18. Despite some health challenges, I still put in 50-hour weeks, and haven’t called in sick in seven or eight years. I make a good salary, but I didn’t inherit my job or my income, and I worked to get where I am. Given the economy, there’s no retirement in sight, and I’m tired. Very tired.  

I’m tired of being told that I have to “spread the wealth” to people who don’t have my work ethic. I’m tired of being told the government will take the money I earned, by force if necessary, and give it to people too lazy to earn it.  

I’m tired of being told that I have to pay more taxes to “keep people in their homes.”  Sure, if they lost their jobs or got sick, I’m willing to help. But if they bought Mc Mansions at three times the price of our paid-off, $250,000 condo, on one-third of my salary, then let the left-wing Congressional Criminals who passed Fannie Mae and Freddie Mac, and the Community Reinvestment Act that created the bubble, help them with their own money.  

I’m tired of being told how bad America is by left-wing millionaires like Michael Moore, George Soros and Hollywood Entertainers who live in luxury because of the opportunities America offers. In thirty years, if they get their way, the United States will have the economy of  Zimbabwe , the freedom of the press of  China , the crime and violence of  Mexico , the tolerance for Christian people of  Iran , and the freedom of speech of  Venezuela .

I’m tired of being told that Islam is a “Religion of Peace,” when every day I can read dozens of stories of Muslim men killing their sisters, wives and daughters for their family “honor”; of Muslims rioting over some slight offense; of Muslims murdering Christian and Jews because they aren’t “believers”; of Muslims burning schools for girls; of Muslims stoning teenage rape victims to death for “adultery”; of Muslims mutilating the genitals of little girls; all in the name of Allah, because the Qur’an and Shari’a law tells them to.  

I’m tired of being told that “race doesn’t matter” in the post-racial world of Obama, when it’s all that matters in affirmative action jobs, lower college admission and graduation standards for minorities (harming them the most), government contract set-asides, tolerance for the ghetto culture of violence and fatherless children that hurts minorities more than anyone, and in the appointment of U.S. Senators from Illinois.  

I think it’s very cool that we have a black president and that a black child is doing her homework at the desk where Lincoln wrote the Emancipation Proclamation. I just wish the black president was Dr. Condoleezza Rice, or someone who believes more in freedom and the individual and less arrogantly of an all-knowing government.  

I’m tired of a news media that thinks Bush’s fundraising and inaugural expenses were obscene, but that think Obama’s, at triple the cost, were wonderful; that thinks Bush exercising daily was a waste of presidential time, but Obama exercising is a great example for the public to control weight and stress; that picked over every line of Bush’s military records, but never demanded that Kerry release his; that slammed Palin, with two years as governor, for being too inexperienced for VP, but touted Obama with three years as senator as potentially the best president ever. Wonder why people are dropping their subscriptions or switching to Fox News?  Get a clue. I didn’t vote for Bush in 2000, but the media and Kerry drove me to his camp in 2004.  

I’m tired of being told that out of “tolerance for other cultures” we must let Saudi Arabia use our oil money to fund mosques and mandrassa Islamic schools to preach hate in America, while no American group is allowed to fund a church, synagogue or religious school in Saudi Arabia to teach love and tolerance.  

I’m tired of being told I must lower my living standard to fight global warming, which no one is allowed to debate. My wife and I live in a two-bedroom apartment and carpool together five miles to our jobs. We also own a three-bedroom condo where our daughter and granddaughter live. Our carbon footprint is about 5% of Al Gore’s, and if you’re greener than Gore, you’re green enough.  

I’m tired of being told that drug addicts have a disease, and I must help support and treat them, and pay for the damage they do. Did a giant germ rush out of a dark alley, grab them, and stuff white powder up their noses while they tried to fight it off? I don’t think Gay people choose to be Gay, but I damn sure think druggies chose to take drugs. And I’m tired of harassment from cool people treating me like a freak when I tell them I never tried marijuana.  

I’m tired of illegal aliens being called “undocumented workers,” especially the ones who aren’t working, but are living on welfare or crime. What’s next?  Calling drug dealers, “Undocumented Pharmacists”?  And, no, I’m not against Hispanics. Most of them are Catholic, and it’s been a few hundred years since Catholics wanted to kill me for my religion.  I’m willing to fast track for citizenship any Hispanic person, who can speak English, doesn’t have a criminal record and who is self-supporting without family on welfare, or who serves honorably for three years in our military…. Those are the citizens we need.  

I’m tired of latte liberals and journalists, who would never wear the uniform of the Republic themselves, or let their entitlement-handicapped kids near a recruiting station, trashing our military. They and their kids can sit at home, never having to make split-second decisions under life and death circumstances, and bad mouth better people than themselves. Do bad things happen in war?  You bet. Do our troops sometimes misbehave?  Sure. Does this compare with the atrocities that were the policy of our enemies for the last fifty years and still are?  Not even close.  So here’s the deal. I’ll let myself be subjected to all the humiliation and abuse that was heaped on terrorists at Abu Ghraib or Gitmo, and the critics can let themselves be subject to captivity by the Muslims, who tortured and beheaded Daniel Pearl in Pakistan, or the Muslims who tortured and murdered Marine Lt. Col. William Higgins in Lebanon, or the Muslims who ran the blood-spattered Al Qaeda torture rooms our troops found in Iraq, or the Muslims who cut off the heads of schoolgirls in Indonesia, because the girls were Christian. Then we’ll compare notes. British and American soldiers are the only troops in history that civilians came to for help and handouts, instead of hiding from in fear.  

I’m tired of people telling me that their party has a corner on virtue and the other party has a corner on corruption. Read the papers; bums are bipartisan. And I’m tired of people telling me we need bipartisanship. I live in Illinois, where the “Illinois Combine” of Democrats has worked to loot the public for years. Not to mention the tax cheats in Obama’s cabinet.  

I’m tired of hearing wealthy athletes, entertainers and politicians of both parties talking about innocent mistakes, stupid mistakes or youthful mistakes, when we all know they think their only mistake was getting caught. I’m tired of people with a sense of entitlement, rich or poor.  

Speaking of poor, I’m tired of hearing people with air-conditioned homes, color TVs and two cars called poor. The majority of Americans didn’t have that in 1970, but we didn’t know we were “poor.” The poverty pimps have to keep changing the definition of poor to keep the dollars flowing.  

I’m real tired of people who don’t take responsibility for their lives and actions. I’m tired of hearing them blame the government, or discrimination or big-whatever for their problems.  

Yes, I’m damn tired. But I’m also glad to be 63. Because, mostly, I’m not going to have to see the “Atlas Shrugged” world of Ayn Rand these idiots are making. I’m just sorry for my granddaughter.