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July 18, 2008 at 10:27:30
Promoted to Headline (H3) on 7/18/08: by Michael Chavers Page 1 of 1 page(s) |
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Now I know this sounds like a simple case of getting 2 hookers out of jail but no Fannie and Freddie were founded as a government agency in 1938 as part of FDR's New Deal to provide ready cash to the mortgage market to make loans for home loans. In 1968, to remove the activity of Fannie Mae from the federal books, it was converted into a privately owned, profit-making housing finance companies that hold or guarantee almost half of the US mortgage loan market. What Paulson seeks and will ultimately get is an unlimited line of credit i.e.: your tax dollars to guarantee their debt and authority to purchase shares to add to their capital base. Paulson said the new subsidies were designed to sustain the two institutions in their current form. WTF!!! Socialism for the Rich. This smells like rotten fish to me. These companies are owned by private stock holders, their CEO's have stuffed their pockets with millions of dollars in lavish salaries and perks to the tune of $18 million for Freddie Mac and $13 million for Fannie Mae this year all the while giving them more incentives to cook the books like Enron so they could take home larger bonuses. Now the bubble has burst and we must now save the irresponsible and possibly criminal activity of these corporations. They have billions in losses, their shares have plummeted and some say that both would be bankrupt if their assets were marked down to their current market value. Now the Bush boys want to save America by an explicit federal guarantee and offer taxpayer money to help recapitalize the two banks, more or less nationalizing these companies. The problem is they want to nationalize the freaking loses and give the profits back to the speculators and keep the obscene salaries their CEO's. So, in other words, you and I will pay speculators & CEO's to drive the stock down, let them make bad decisions and then let them pocket millions when their stocks recoup. If we are going to more or less nationalize these guys debt why aren't we nationalizing their assets too? Why am I paying dividends to shareholders when they are playing with our money? Why pay CEO's to lose money? Why allow them to finance the lobbyists to buy votes in congress so that they are shielded from accountability? In Bush World, we the taxpayer has been made the guarantor of not simply the banks that we can regulate, but the hedge funds and investment houses that they have deregulated.We can not let the banking fail but the feds are not demanding tighter regulation on what gambles the speculators can make, how much debt they can take on, and what rewards they can pocket. Bush and company are committed Socialists for the rich. Just look at Medicare, Bush's pals subsidize private insurance companies to compete with public Medicare. Guess what when they say how government is wasteful and inefficient it turns out Medicare provides healthcare much less expensively, than the private insurance companies.Bush and Tom Delay's Congress pushed the prescription drug bill they included the provision that prohibits Medicare from negotiating cheaper prices for drugs. Guess who profited? I give you a hint it wasn't you or me. You may ask yourself, why this is allowed to happen? There are two reasons. The way we finance our elections, and we still have not neutered the K Street lobbyists. The Fannie Mae and Freddie Mac have kept themselves free from pesky regulators and congressional prying by surrounding themselves with a huge stable of lobbyists including former members of congress from the revolving door of the house to K Street. In 2006 Freddie Mac paid a $3.8 million civil penalty to the Federal Election Commission to settle charges that it had used corporate resources to stage 85 fundraising dinners that raised $1.7 million for candidates for federal office. In internal documents, Freddie Mac described the events as an exercise in "political risk management." The fine still stands as the largest in the FEC's 33-year history. We also know for a fact that Fannie and Freddie have interesting Enronish accouting practices because This past April, former Fannie Mae chief Franklin Raines and two top executives agreed to a $31.4 million settlement with the government over their roles in a 2004 accounting scandal. Encouraging home ownership is central to sustaining the middle class that makes America great. So it makes perfect sense for the government to subsidize housing mortgages, but why do we need to let crooked under regulated bankers and their investors pocket the money after we the people bail them out. Just call it what it is, Corporate Socialism. Peace and Liberty through intelligence, strength, and integrity.
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how we used to deal with this type
Bush and the gop thieves (some democrats helped) de-regulated everything they could so their buddies could then rob everything blind and guess who gets to eat it? I say bring back the guillotine. Its amazing how fast the ruling class will shape up once heads start to roll. by Levon (0 articles, 0 quicklinks, 0 diaries, 36 comments) on Friday, Jul 18, 2008 at 11:50:05 AM  (0+)
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Too good a word for him!
Good article, Mr Chavers, but the WORD is "FASCISM". by Bia Winter (6 articles, 2 quicklinks, 14 diaries, 756 comments [119 recommended, 0 rejected]) on Friday, Jul 18, 2008 at 2:51:09 PM (0+)
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Bushed again
I agree Bush is a facisit on constitutional rights, but he is defiantly a Wall Street Socialist when it comes to government giveaways to corporate Amerika. by Michael Chavers (53 articles, 0 quicklinks, 15 diaries, 198 comments [5 recommended, 0 rejected]) on Friday, Jul 18, 2008 at 3:19:10 PM (0+)
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Please read:
Time for comrade Paulson to pull the plug on the Fannie and Freddie charade by Darren Wolfe (15 articles, 400 quicklinks, 141 diaries, 1031 comments [84 recommended, 0 rejected]) on Friday, Jul 18, 2008 at 8:49:15 PM (0+)
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The bailout
I'm definitely not in favor of bailing out Fannie and Freddie. They should never have been privatized. We know that never works and it's always us taxpayers who end up footing the bills. Let the greedy investors and those in charge take the hit. Who will bail me out when my 401k tanks? All private citizens who play the market or invest know there is a risk of losing your investment and these guys are no different. I would like, just once for my elected government to think of me for a change instead of rushing to the aid of the big corporations after they've totally screwed the country with their get rich quick on the backs of the little guy schemes and run sniveling to the feds for a handout of my tax dollars while I can barely keep my family going. It's the same over and over. We can't let them fail, they're too big. Too many people will get hurt. Bull. They get bailed out and still too may people get hurt because the bailout doesn't cover the little guys who were abused by those who should have known better. They get their money without any kind of promise or guarantee not to do it again. what the hell is wrong with Congress? Ponying up $300 of our taxpayer dollars and not even one tiny string attached. Just hand them the money. Let them stew. Let them fail. It serves them right for committing fraud on the American taxpaying voter and Congress would do to remember that we are voters. by Debra McDaniel (0 articles, 0 quicklinks, 0 diaries, 4 comments) on Saturday, Jul 19, 2008 at 8:34:08 AM (0+)
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Corporations EVERYTHING
People NOTHING That's how our system has evolved. It's amazing that the people living in tent cities because they lost their homes have had no assistance but these corporate tycoons that have stuffed their pockets through unscrupulous lending practices (fraudulent) in many cases will retain their jobs. What kind of a message does that send? This US mentality that "Corporations always do the right thing" is ludicrous. Corporations have become superhuman criminals acting against the best interests of people and the planet. They are road block to all the things we need to accomplish. When the Supreme Court error called them "legal persons" and allowed them to gain power greater then our government with no accountability it was the beginning of the down fall of our society. We have to turn back the clock. We have to break them up and make them once again responsible to the people and the people's government. All the multi-nationals should be broken up into little tiny bits. They all have charters that are supposed to be give the people the authority to dissolve them when they stop being of benefit to the common good. Corporations should be transparent and accountable. Instead they hide behind privacy rules (which do not benefit the people) have closed door meetings and secret sessions. Use the corporate veil to keep people from knowing what they are doing and how they are planning. We need major reforms in the corporate arena. And our two leading candidates are corporate insiders. Barack has a Wall Street insider as his economic advisor. Help us all. by August Adams (11 articles, 0 quicklinks, 1 diaries, 585 comments [11 recommended, 0 rejected]) on Saturday, Jul 19, 2008 at 8:49:08 AM (0+)
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Reply: Like I said...
THAT is Fascism: Government By the Corporations, FOR the Corporations. by Bia Winter (6 articles, 2 quicklinks, 14 diaries, 756 comments [119 recommended, 0 rejected]) on Saturday, Jul 19, 2008 at 8:55:13 AM (0+)
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Free Market Hogwash
Free Market it appears is just another two-word saying that means essentially the same thing as bull sh*t. Good point there Mr. Chavers and it is a talking point that needs to be hammered as if it were a stake through the diseased heart of the Republican enabled, blood sucking vampire that is looter capitalism. Socialism for the rich is always the way that these sleazy American fascistos have played the game and Helicopter Ben Bernanke and that Goldman Sachs stooge Hank Paulson are running the printing presses 24/7 and calling in the Plunge Protection Team to save their criminal buddies on Wall St. while the rest of the peasants are squashed under increasingly unmanagable loads of debt brought about by state sanctioned fraud. Free Markets are nothing other than SOCIALISM for the rich elitists and this needs to be shouted from every damned rooftop until it sinks in. King George might as well put a hammer and sickle on the flag because this sad shell of a country is increasingly starting to resemble Stalinist Russia in every respect. Just my two cents EE by Ed Encho (12 articles, 20 quicklinks, 65 diaries, 438 comments [14 recommended, 0 rejected]) on Saturday, Jul 19, 2008 at 9:16:13 AM (0+)
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Crookism
Socialism and capitalism require equality and fair contracts to work. What we get from the Republicans is plain and simple crookism. by John Hanks (1 articles, 0 quicklinks, 0 diaries, 1760 comments [39 recommended, 0 rejected]) on Saturday, Jul 19, 2008 at 9:16:41 AM (0+)
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Socialism
Please stop misusing the word socialism. What we have is fascism which is caused by free market capitalism enabling Corporations to establish corporate government. Socialism is an economic system where most businesses are socially owned and democratically run by the workers themselves. by Ty (0 articles, 0 quicklinks, 0 diaries, 888 comments [2 recommended, 0 rejected]) on Sunday, Jul 20, 2008 at 7:31:24 AM (0+)
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