Tuesday, February 19, 2013

The Real Reason Why Fannie and Freddie Are Not Going Away

What follows is an excerpt from the article at the following link, followed by an excerpted comment at the same link which tells the "real" story of why Fannie and Freddie will probably survive as the corrupt GSE organizations they became in the years leading up to the "crash"--

Why Fannie and Freddie Aren't Going Away Anytime Soon - The Home Front (usnews.com): "Fannie Mae and Freddie Mac, the two formerly private mortgage giants, have been in limbo since 2008 when the federal government took them into conservatorship. Since then, Congress and President Barack Obama have proposed sweeping reforms of Fannie and Freddie—conservatives demand the government-sponsored enterprises (GSEs) be privatized if not abolished altogether, while progressives favor a more gradual phasing out of the two mortgage giants, which have become critical to the housing market recovery during the past several years. . . . comment --'Just say it. The two Government Sponsored Enterprises (GSE) are enormous "cash cows" for  . . . politicians (mostly Democrats, but also quite a few opportunistic establishment Republicans as well). CEO Jim Johnson and later, Franklin Raines both made sure that guys like Barney Frank and Chris Dodd always got their "grease" on a regular basis.'"


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