Punching Stupid and Evil in the Face Since 1986!

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Wednesday, June 9, 2010

Don't you love supporting Fannie and Freddie

Republicans tried to force a vote today that would have gotten Fannie and Freddie off the backs of the American tax payer. It's a shame our wonderful congress just didn't see the value in that.
The U.S. House of Representatives Wednesday blocked an effort by Republicans to end the taxpayer support of Fannie Mae (FNM: 0.9, -0.011, -1.21%) and Freddie Mac (FRE: 1.16, 0, 0%).
While Fannie and Freddie lead the charge in loans gone bad, Congress believes we should continue to support them regardless. After all, combined they provide almost 3/4 of all new mortgages.

According to Barney Frank, there is no reason to take them out of conservatorship, after all they are making money. Oh really Barney?
However, the companies continue to rack up losses on mortgages they bought or guaranteed at the height of the housing boom. They foresee receiving more taxpayer funds under an agreement in which the Treasury pumps in enough capital each quarter so that the companies maintain a positive net worth.
It is of course unimportant that not only have we jammed over $145 billion into these two companies since 2008, but in any year they don't show a profit, we pump even more dough into them to be sure they do.

The Federal government had no business propping them up to start with and they have no business continuing to put taxpayer money into a failing business. If Fannie and Freddie are so totally awesome, let them stand on their own.