Well, I and many others missed it because the story was released on Christmas Eve. Merry Christmas, Fannie and Freddie; what a nice Christmas present from the taxpayers.
http://www.boston.com/business…
Given the economic events of the last few years, most notably the mortgage meltdown – is this a good thing? Granted, there are new CEOs in each of the firms, but is carte-blanche the way to go? Shouldn’t there be some reasonable restrictions – like making damn sure that the policies of wild abandonment of the basic rules of finance never happen again?
Here’s my additional concern; while it’s “wonderful” that we’re helping out the investors in Fannie and Freddie, none of this addresses the overpriced homes and resulting massive mortgages that occurred as a result of the “OK Corral” policies that existed prior to the meltdown. It may stand to reason that if the investors are bailed out, then the mortgage holders may see relief – but does it stand to reason… when none of the articles on this issue addresses this big gorilla in the room. After all, the administration has already bailed out the banks…and the average citizen has seen little relief yet, only rapidly increasing credit card and mortgage rates. And yes – mortgage rates – only the very pristine get the nice 5% rates. The Boston Globe, and many other newspapers, express concern over CEO salaries, but where the hell is the bailout for the average josephine or joe just trying to pay their bills? Are we really just leaving them, “holding the bag?”
Will carte blanche provide these folks with the ability to refi, at least? Because it’s not happening now. Current programs only touch a very few mortgage holders and I haven’t read a single article that suggests this is going to change. And as most of you know, inflation nearly always follows a period of expansionary policy, so the regular josephines and joes of the country will need to refi before the rates start to go up.
Any thoughts on this?
Hint: Multi-million dollar pay packages and wall street insiders.
I was about to post. Maybe that was a good thing. But what it pretty much said was that we are powerless about all of this. We are not in a true capitalist society. And worst of all, our government is corporate owned. The government still believes that if they support the corporations, the corporations will support the people. Clearly, they are in a soundproof bubble (where they hear only corporate lobbyists and Timothy Geithner). It has become so ridiculous it is almost laughable.
<
p>
Actually, I don’t think the government ‘believes’ anything. I also don’t think most of the people who have the power in government care whether corporations support the people. They see us as the many, and themselves as the few. Those who do not see things that way are almost all Democrats, but the D’s have their share of the others as well. That’s why it’s so disappointing to see Obama being so generous to the big banks, big pharma, big insurance, etc., while doing so little for the middle class.
If this was a “good thing” or good news…why release the news on Christmas Eve? Probably because it’s not good news for the taxpayer or mortgage payers. I hate to start a brand new year so disheartened, but I can’t help it. No one, including Democrats, is looking out for the little guy.
Unfortunately, the Treasury’s actions over the past couple of weeks have further concentrated power in the Executive Branch leaving the Peoples’ elected representatives in Congress out in the cold.
<
p>Rather than waiting until January 1, 2010 to decide how much to support Fannie and Freddie the folks at Treasury decided to provide 3 years of unlimited support before they would have to ask Congress for approval. That they released the information on Christmas Eve only further supports the lack of transparency that the Obama Administration is providing despite campaign promises to the contrary. While some members of Congress may privately thank Geitner et al for saving them from a vote, Congress should demand a thorough review and action as the Treasury actions have committed the taxpayers funds on an unprecedented scale. I believe that Kucinich has called for action and hopefully he will be successful. If you want to see one example of who has benefited from these actions take a look at Bill Gross and PIMCO.
<
p>Less than a week later, the Treasury announces an additional $3.8 billion for GMAC making the US Government the majority owner of this auto and real estate financing firm (ResCap is owned by GMAC and is a disaster). This news was announced on the day before New Years Eve, again with the transparency. If you want to see who may benefit from this transaction take a look at news reports mentioning Warren Buffet and his potential interest in ResCap now that the government has injected more capital.
<
p>TARP was extended even though the Treasury has indicated that they are done investing in banks. If the Treasury is done then why extend TARP? Oh yeah, if they did not extend TARP they would have to go back to Congress and ask for the money again.
<
p>Finally, the continued proliferation of “Czars” who require no Senate confirmation and whose roles often mirror those cabinet secretaries who do require confirmation looks like a back door approach to concentrating power without having to have the approval of the Legislative Branch.
<
p>Yes, this has been going on for some time under many administrations, but the increased commitment of taxpayer resources without so much as a word being required from Congress should frighten us all regardless of political affiliation. We campaign for, support and vote for representatives and senators to bring our voice to Washington, if they are to be bypassed for significant decisions such as those made by the Treasury these past weeks, why do we even need them?