Thursday, April 22, 2010

Largest bailout recipients, Fannie/Freddie, ignored in Dem reform

Why will Fannie and Freddie go unreformed? Because this is how the Democrats provide "affordable" housing. What is "affordable" housing you might ask. "Affordable" housing is giving loans to folks who are not qualified to get a loan on their own merit. Much of our current financial crisis came from these easy lending policies.

Now the good folks who bought houses they COULD afford, are suffering from these easy lending practices. You had millions of people who should not have been able to qualify for a mortgage, buying up houses with the Democrat's easy money, thereby driving up housing prices. Now, because the unqualified buyers are going belly up, house prices are crashing down.

So, back to the hard working folks who purchased houses they COULD afford. Well, the value of their home is headed down. To add insult to injury, their neighbor, who probably has three big screen TVs and smokes two packs a day, is getting bailed out by uncle Obama. So Mr. hardworking, bill and tax paying, purchased a house he could afford dude, gets to bail out his lazy neighbor, who should not have been able to afford a house in the first place.
Congressman Tom Price WRITES
“Officially, the Congressional Budget Office expects the bailout of Fannie Mae and Freddie Mac to cost taxpayers $380 billion,” said Congressman Price. “Unofficially, Democrats promised the companies an infinite bailout, forcing taxpayers to choke down all $1.6 trillion of their combined debt if necessary. At this point, that $1.6 trillion debt may as well be issued in U.S. Treasury bonds.

The largest taxpayer bailout did not go to Bear Stearns, AIG, or Goldman Sachs; it went to Fannie Mae and Freddie Mac. But those are the two government-created entities President Obama will likely not mention in his speech on Wall Street tomorrow because the Democrats’ notion of financial reform ignores them completely. [bold added]

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