Thread: FANNIE AND FREDDIE: GIVING AWAY THE FARM

FANNIE AND FREDDIE: GIVING AWAY THE FARM
Ellen Brown, August 8th, 2008
http://www.webofdebt.com/articles/fanni ... reddie.php

Last week, Congress passed a housing bill that gave the Treasury Department a blank check to inject billions of U.S. taxpayer dollars into mortgage giants Fannie Mae and Freddie Mac, snatching them from insolvency. To accommodate this blank check, Congress obligingly raised its debt ceiling by $800 billion. Ouch! That’s nearly a trillion dollars. Why was it necessary to incur this potentially crippling public debt to bail out two completely private, for-profit behemoths, which have run themselves into bankruptcy with their own risky investment schemes? Policymakers said it was essential to maintain the country’s creditworthiness with foreign lenders, which today hold about one-fifth of Fannie and Freddie securities. According to a July 21 report by Heather Timmons in The New York Times:

One out of 10 American mortgages is, in effect, in the hands of institutions and governments outside the United States.1

Ten percent of American mortgages are now owned by foreigners? Doesn’t that defeat the whole purpose of Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Mortgage Corporation)? They were supposedly set up to fund “the American dreamâ€

Congress controls the purse strings and can kill anything it doesn’t like by refusing to fund it. We are broke, no more money............

Yet, with:
Reagan: Democratic controlled Congress;
Bush I: Democratic controlled Again;
Clinton: Democratic again that killed universal health care;
then Republican controlled Congress for a balanced budget.
It pushed Clinton to limit welfare entitlements; but Clinton used
the veto against balance budgeting. Michael Moore says “our
greatest Republican president ever.â€