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The PJ Tatler

by
Stephen Kruiser

Bio

August 6, 2013 - 8:21 pm

Lip service.

The core of Obama’s proposal involves winding down mortgage finance giants Fannie Mae and Freddie Mac, which own or guarantee more than half of all U.S. home loans and are critical to keeping capital flowing to lenders and borrowers.

The two government-sponsored entities have drawn heavy fire for allowing people to take risks and buy homes they could not afford. A bipartisan bill already circulating in the Senate would wind down the two organizations, and Obama said the measure is in line with ideas he can support.

The administration wants to replace Fannie Mae and Freddie Mac with a system in which the private market buys home loans from lenders and repackages them as securities for investors.

The government would still play a role in housing markets by insuring or guaranteeing those securities – at a cost to investors.

“Private capital should take a bigger role in the mortgage market. I know that sounds confusing to folks who call me a socialist,” Obama said, inserting a dig at political opponents who paint him as a left-leaning liberal.

First, kudos to him for not fighting the wind-down of Fannie Mae and Freddie Mac-Barney Frank must be rolling in his ill-gotten gains somewhere. However, as any real free market fan knows, if the government remains involved in any way, the market isn’t being allowed to operate at its best. And that’s true even if all the federal monster is touching the process with is the very tip of one finger on its grubby little paws.

It should also be noted that President Obama has a history of giving a head-fake to the other side when he’s about to move in the opposite direction.

Stephen Kruiser is a professional comedian and writer who has also been a conservative political activist for over two decades. A co-founder of the first Los Angeles Tea Party, Kruiser often speaks to grassroots groups around America and has had the great honor of traveling around the world entertaining U.S. troops.

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All Comments   (8)
All Comments   (8)
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If O wasn't struck by lightening, he should be. Struck DEAD.
50 weeks ago
50 weeks ago Link To Comment
Btw, didn't the Obamessiah met with some real estate mogul just days ago? Coincidence?
50 weeks ago
50 weeks ago Link To Comment
So I guess anybody who qualifies for an "obamaphone" is now going to get a quarter of a million dollar direct-subsidy for a house (instead of filtering it through the liar's banker buddies). Those campaign "bundlers" in real estate want their payback now! Just come on down to the van out in front of the welfare office and trade your phone in for a check (if you;ve got ten or twelve obamaphones you can get yourself a real nice place in the Hamptons).
50 weeks ago
50 weeks ago Link To Comment
Part of the problem, perhaps a substantial part, was that government influence in the form of serious regulatory pressures that reflected the will of Congress and the actions of relevant special interests will corrupted the process.

Congress can borrow (so far) a comparatively infinite amount of money so there is little or no limit or consequences to making regulatory agencies do things. It is not as if Congress, in general, recognized that it had a limited amount of funds and goosing the mortgage markets -- for "good" social purposes -- could lead to some of those funds being eaten up in the damage control/mitigation so not available to spend on other "good" things.

Why should government insure or guarantee any mortgage? If its politically influenced insurance premiums were inadequate, it can resort to its taxing and/or borrowing power. It cannot operate like a business that has to contend with the prospect and consequences of bankruptcy if it gets it sums wrong.
50 weeks ago
50 weeks ago Link To Comment
If Obama really means this - which is always debatable when dealing with a sociopathic liar - it could be part of his strategy to destroy the suburbs (the middle class) in favor of the cities (the poor and Obama's ilk, the wealthy elites).
50 weeks ago
50 weeks ago Link To Comment
Some of those who have greased The Obamessiah pockets are in the real estate business and they too want a part of the "action". You know, when the gubbermint makes "investments" with OPM (other people's money) in private business. This is what is about. The King Messiah is setting the carpet for a lot of taxpayer money in the pockets of some real estate donors.
50 weeks ago
50 weeks ago Link To Comment
I don't understand your complaint, do you want to keep F&F?

Not that there's so much difference between them and the big banksters anyway, more money for Goldman if F&F go away. Doh!
50 weeks ago
50 weeks ago Link To Comment
I am all in favor of getting rid of two government agencies, however, mortgage backed securities have been down this road before and not that long ago were the blame for the global economic collapse. Hello, anyone remember banks and loan companies dealing these "securities" on the secondary market??? One thing about the Liar and Thief we have as a president, if nothing else he is predictable.
50 weeks ago
50 weeks ago Link To Comment
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