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They Lied To Us, And Now We Are Footing Their Legal Bills

Who would that be, exactly? Oh, you are going to love this. We, you and I, American taxpayers, are footing the LEGAL bills for the Fannie Mae/Freddie mac executives who drove our economy into the ground for fraud suits filed against them starting 10 years ago. Who would that be, exactly? Oh, you know, people like Obama’s good buddy, Franklin Raines, and Timothy Howard. Interestingly, though, this isn’t even for their efforts to bust the housing market. Nope. It has to do with the financial side of things.

Here is Stuart Varney explaining it all:

Yes, you heard that right – $160 MILLION dollars we have shelled out for these folks thus far. It is in their contract. Nice.

Fannie and Freddie are STILL dragging us down, be it through paying for these executives, or continuing to lost money on mortgages. To recap, in 2008, Fannie Mae lost $58.7 BILLION dollars, and Freddie Mac lost $50.1 BILLION dollars. And we are already in the red to the tune of $145 Billion now since 2008. One can only hope that the bleeding of money from these two institutions will be stanched, and SOON. Until then, though, it is the mother of bailouts since we owe 80% of the two now. You don’t even want to know what the anticipated amount is to fix them. If you can stomach it, click here.

But I am not holding my breath that Fannie and Freddie will get their comeuppance, which is long overdue. Considering Obama is expected to assert he wants to keep his spending ways when he gives the SOTU Tuesday night, I sure don’t see him taking on these two F’s.

Speaking of Obama, why is everyone acting like his actually getting a 50% approval in a few polls is the greatest thing since sliced bread? Is this an indication of our poor performance in mathematics that we see that as a GOOD thing? Many polls still have him below 50%, which is not exactly a glowing recommendation in my book (unless someone is a meteorologist, and then being right half of the time isn’t so bad. Ahem.).

I don’t get it. But that is the meme going into the SOTU – how Obama is doing SO well. Being crappy half the time (or more) at your job is NOT a good report, people, no matter how the pundits might want to spin it. I believe that would qualify as an “F” by most (all?) academic standards. Or at least it was back when I went to school (we didn’t get the “well, even though you failed at your homework, and failed your test, we are still going to pass you because we don’t want to hamper your self-esteem” pedagogy. We had to earn our grades, had to pass our tests, had to do WAY better than 50%, if we wanted to move on. Just sayin’.)

So, we continue to be bilked by Fannie and Freddie. They will continue to get our hard earned tax paying dollars to continue to operate in the red. Obama will continue his spending, deficit increasing ways, and ALL of this is passed on to us.

Gee – and he’s getting close to 50% approval? I guess some people don’t mind throwing their money away, especially to bail out a bunch of guys who lied, lied, and lied some more. But I do. How about you?

  • Rabble Rouser Rev. Amy

    That is so funny, Cindy!  Punkin’ is our oldest cat – she’s around 8.  The other cat who loves to jump up there is Bug.  We always know when Bug is up there – he is not graceful.  Rarely do we know Punkin’ is up there – she is so quiet, unless i look up and see her, I don’t know she’s there.

    Longhorns!  COOL!!!!  I love cows.  I think it is because my greatgrandfather was a dairy farmer, and it is in my DNA!  :)   (I do know there is a big difference between the two, but longhorns are just cool!)

  • Mr. Natural

    >>>  What about Franklin Raines?

    Not Number 1 on my list of Bloated Parasites Deserving of Defenestration, or even Number 2, but WELL ahead of Number 4!

    Raines is just a very, very smart version of Obama, and he walks away with a much fuller swag bag.

  • Mr. Natural

    >>>  …but he will be appealing.  

    That’s a matter of individual taste. Personally, I find him, “icky.”

    YMMV

  • Cindy

    LOL Rev. Amy!

  • Cindy

    Jim—that’s funny!

  • yttik

    It started out with congress and Freddie/Fannie pressuring banks, because “everyone should own a home,” but it’s really not just a few poor people in modest homes defaulting on their mortgages that caused the problem. The whole program expanded until we were subsidising developers, contractors, backing up speculators, encouraging people to buy McMansions. We went way, way past the point of helping poor people afford home ownership. It expanded to the point where Freddie/Fannie had secured half of all the mortgages in the US.

    The plan was to have Fannie/Freddie free up lenders so they could lend more money. When a lender had made all the loans he could afford, Fannie would secure those loans and make it as if he hadn’t loaned out any money at all, because they bought all the risk from him. Once he had the risk removed, he could afford to write more loans. So banks were directed by congress and Fannie, to loan more money then they could afford and everything was going to be okay because the loans would be insured by the federal government.

    Even if  people had not defaulted on their mortgages, eventually this pyramid scheme was going to collapse.

  • Retired

    Who let the crappy, poor quality loans in the first place, and why did they let them.  Did Fannie, Freddie and Congress pressure banks to write substandard loans to people that they knew didn’t have the financial wherewithall to pay for them so that “everyone can own a home?”  What Congresman was at the vanguard of that movement? 

  • Cindy

    “Punkin’ ” is the name of one of our longhorns….LOL!

  • oowawa

    Yep–never can tell when a cat’s going to fall on your head . . .

  • oowawa

    Wonder if Thee One will give a “shout out” to the relatives . . .

  • Cindy

    Oh Thank you!! Just gorgeous!!

  • Rabble Rouser Rev. Amy

    Thanks, y’all.  Two of our cats think we built this place as a large jungle gym just for them.  This is Punkin;:

  • Jim Ticehurst

    The Wall St Perps get Protection and Taxpeyer Bail Outs..the Tax Payers get Bankrupcys and Home Foreclosures..1.5  million forecclousres this year in fact..
    Even “CHANGE” has a different meaning for Barack Obama when it comes to Wall Street..They seem to havee him in the “SACH..”

    Thats what I Call a real “FLEA MARKET”..

  • ~~JustMe~~

    Hope the work goes smoothly, RRR. Amy!

  • armymom

    That should have read “as though the democrats WEREN”T greedy little”

  • armymom

    Give it a freaking break. Like I said, I did mortgages in the nineties until Sept 1999. Clinton and the “I want a home that I can’t pay for crowd” did this damage, along with the brokers. I say brokers because they knew they were making loans to those who couldn’t pay, but what the heck, they were forced to and they made a shit pile of money off of it. I walked away from making almost $5,000 minumum a month in commissions because I couldn’t live with myself because of what was going on. Pleas don’t make it sound as though the democrats were greedy little f’ckers theirselves. What about Franklin Raines?

  • armymom

    Beautiful!

  • Rabble Rouser Rev. Amy

    Yes, yttik, EXCELLENT point!  How is that possible?  Especially with the market the way it was 10 yrs ago, and yet, sure enough, they were cooking the books.  It makes zero sense to me.  There is little doubt that these two F’s contributed mightily to the issues we are having in our economy now.  And yet, we are still pouring money down that money hole.

    And you KNOW that always reminds me of The Onion’s video abt The Money Hole:

  • Rabble Rouser Rev. Amy

    It is our dream home, that’s for sure.  Here’s one of the house from a couple of years ago – the bushes are bigger, but that’s abt it.  And the next one is our view during a high tide/sunset:

  • yttik

    You know what amazes me about Freddie and Fannie?? Only the government could go into the real estate business and actually lose money. Not just lose money, darn near bankrupt the entire country doing it! Seriously, in theory Freddie and Fannie could have been generating a profit for the taxpayers all along.

    Also, in the ultimate twist of irony, those places in the country that do not have the government extensively involved in housing, have some of the lowest housing prices around, also known as affordable housing. Yes, I’m saying where the Gov did not step in to “help the poor”, the poor were able to purchase their own homes. I saw it happen in my own community, everything was affordable until the Gov showed up to “help.” That’s when our housing bubble began and here we are full cycle again, you practically can’t give a home away in this area, but at least the poor can now afford to own one again.

  • ~~JustMe~~

    Bush tried to get regulation on Fannie and Freddie.  
    This link is from 2003.   
    Bush Fought to Regulate Freddie Mac and Fannie Mae 5 Years Ago Until Democrats Stopped Him

  • ~~JustMe~~

    Both  Bush and McCain tried to get regulation on Fannie and Freddie.
    This link is from 2003. 
    Bush Fought to Regulate Freddie Mac and Fannie Mae 5 Years Ago Until Democrats Stopped Him

  • Cindy

    Rev. Amy—would LOVE to see pics sometime.. I’ve always wanted a log cabin. Lucky y’all!

  • Ferd Not-My-Site-(click to edit) Berfle

    Not again. Another crock of reeking manure from the resident asylum inmate. Do stop this, surfered. Unlike you, none of us have recently fallen off a truck laden with produce.

  • Ferd Not-My-Site-(click to edit) Berfle

    Another crock of manure from the resident asylum inmate. Do stop this, surfered. Unlike you, none of us have recently fallen of a truck laden with produce.

  • Rabble Rouser Rev. Amy

    LOL – thanks, Diana.  Yes, it really is staggering, isn’t it?  The continued insistence that “all was well” when all hell was breaking loose really makes one lose faith in our elected officials, does it not?  Blech.

  • surfered

    Whatever their sins, Fannie & Freddie did not cause the crisis. Wall street sliced, diced and bundled mortgages and paid the rating agencies to rate these bundled AAA.  Insurance was then bought from AIG in the form of credit default swaps. Since the mortgages were rated AAA and “insured,” they could now be sold.  Since they could be sold, there was no reason for the lender to do the due diligence to ensure they could be repaid.                                                                              
    The value of houses in my area fell 30%, so even mortgages financed with 20% down would have been 10% underwater. Payments on adjustable rate mortgages would have increase so much that they would have been unaffordable.                                                                                                    
    If I remember my dates correctly, Republicans controlled the House for 12 years until Jan 3 2007.  The bubble burst in Oct 2008.

    H

  • Diana L. C.

    This IS the video I remember.  Thanks!  Well, I can’t really thank you for making me really, really sick.  But it’s really not your fault.

  • Rabble Rouser Rev. Amy

    Retired, you are so right – I have written a bunch abt Barney Frank and his involvement with Fannie Mae, including his declaration of how GREAT everything was there.  You know, right before the collapse.  There are a number of YouTube videos showing a number of Congresspeople getting their hackles raised at any insinuation that there was a problem.  Uh, yeah.  Here’s a “good” one:

  • Rabble Rouser Rev. Amy

    Excellent point, Noogan – isn’t that just unbelievable what Geithner is pulling?  The trickery with which these folks operate on a regular basis is something that would get the rest of us mere mortals thrown in jail.

    Diana, I do not harbor ill will toward McCaiin at all – I think he would have been a far superior president than Obama.  (At the very, very least, he has a sense of decorum, and would not treat our closest allies as if they are mere annoyances, and throw lavish parties for heads of state with whom we have major issues.  Never mind inviting an anti-American musician to perform at said state dinner.  Wow.) 

    As for Rahm, couldn’t happen to a more deserving guy, right?

    Cindy – construction starts TOMORROW, and our logs will be arriving on the 31st (we have a log home, and the garage will be of logs, too – I’ll do a “Before/After” at some point).  Yay!

  • armymom

    Oh, but wasn’t the Fannie and Freddie debacle because of Glass Stegall being lifted? (sarc)

  • Retired

    Nice contracts.  I wonder who in Congress is supposed to oversee Fannie and Freddie.  Oh, wait, it’s (or it was, until this January) Congressman Barney Frank, who openly acknowledged that he was intimately involved with Fannie Mae executive Herb Moses while he was on the oversight committee with cognizance of Fannie and Freddie.
    So one might say that Frank had a conflict of interest because he fancied a fanny at Fannie.
    If Frank were a man of honor, he would’ve recused himself from this committee assignment, at least while he was intimately involved with someone for which he had oversight responsibilities.  But he didn’t.  Perhaps he felt that his affair with Moses gave him intimate knowledge of Fannie.  It undoubtedly gave him intimate knowledge of at least one fanny at Fannie.
    Corruption is corruption, and Frank is as corrupt as they come. 

  • Noogan

    Taxpayers are now being obligated by the Treasury and the Fed to make good on a potentially much larger volume of bad mortgage loans, made by reckless lenders, guaranteed by Fannie Mae and Freddie Mac in return for a pittance (called a “G-fee”), and packaged into securities which are now largely owned by the Federal Reserve, which has acquired them through outright purchases (not traditional repurchase agreements).

    As I wrote several weeks ago, “The Federal Reserve has expanded the U.S. monetary base by more than 150% since the beginning of the recession. That is not a typo. The monetary base has soared from $800 billion to over $2 trillion. Much of this has been accomplished through outright purchases of mortgage-backed securities (not repurchases) and an equivalent creation of base money. Unless these securities can be sold back out into private hands for the same value that was paid to acquire them, the Fed will have effectively forced the U.S. government to make its implicit guarantee of these agency securities explicit, without the authorization of Congress.


     
    http://globaleconomicanalysis.blogspot.com/2011/01/timothy-geithner-meets-vladimir-lenin.html

  • Cindy

     Is this an indication of our poor performance in mathematics that we see that as a GOOD thing?

    Rev. Amy—LOL…Good one!
    As far as freddie and fanny??An absolute OUTRAGE!

    p.s. Don’t forget to wear a hardhat during all of y’all’s home construction!

  • Noogan

    That isn’t the HALF of it; these people are so criminal, it’s, well, criminal!

    Read about the quiet little accounting change at THE FED, which leaves taxpayers on the hook. This is outrageous!

    Timothy Geithner Meets Vladimir Lenin Stage II; Accounting Rule Changes at the Fed will Mask Losses

    Many people have taken notice of changes slipped into the Fed’s balance sheet reporting rules that will allegedly shield the Fed from devastating losses. Please consider Accounting Tweak Could Save Fed From Losses.

    http://globaleconomicanalysis.blogspot.com/2011/01/timothy-geithner-meets-vladimir-lenin.html

  • PssttCmere

    Some good news though….emanuel off the mayoral ballot, but he will be appealing.

    http://news.yahoo.com/s/ap/20110124/ap_on_go_ot/us_chicago_mayor_emanuel

    “Say What You Will…It Feels So Good”

  • Diana L. C.

    I feel it IS important at this time for the many who dislike McCain (who was still a far better choice than That One) to remind people that McCain HAD tried to get Fannie and Freddie regulated.

  • PssttCmere

    You didn’t think they wouldn’t find one more way to screw the taxpayers, didja?

    This is just one more in a long line of obamanations…makes me sick.

    My take is the only reason his numbers are up is because of the Gifford shooting and his photo ops….now some of those that had relatives killed in that incident will be front and center at the SOTU debacle….another photo op for the emperor with no clothes…

    “Say What You Will…It Feels So Good”

    http://www.saywhatyouwill.proboards.com