541 online
Most Popular Choices
Share on Facebook 22 Printer Friendly Page More Sharing
Exclusive to OpEd News:
OpEdNews Op Eds   

Fannie and Freddie; A Pair to Draw To.

By       (Page 1 of 2 pages)   No comments

Mike Folkerth
Message Mike Folkerth

Good Morning Middle America, your King of Simple News is on the air.


As the self described “hardest working ever” and consequently the “lowest rated ever” Congress, has passed the Fannie (Federal National Mortgage Assn.) and Freddie (Federal Home Loan Mortgage Corp.) bailout, we need to take a closer look at just exactly what that little piece of hurried legislation has accomplished.


First, it is important to understand that Freddie and Fannie hold the mortgages for about half of all homes in America. Second, they are both private corporations that are traded on the New York Stock Exchange, not government entities; but none the less, are tools of our mathematically challenged government leadership.


Freddie and Fannie take loans off the banks hands in order to pass on the risk and to enable the banks to constantly make more loans and collect more fees without the bothersome issue of collection, which has become a problem of some magnitude.


So why would the public buy stocks in companies such as Freddie and Fannie who I have pointed out for some years to be extremely risky? The answer to that question was always evident; should there ever be a failure, the federal government would reach deep into the taxpayers’ pockets and bail out the stockholders. The proof is in the pudding.


Exactly how bad is our banking and economic system when the feds bailout private corporations to the tune of billions and begin to seize banks on a regular basis? I think that answer is self evident….it’s horrific.


To better understand just how horrific, in that piece of bailout legislation was another provision that raised the ceiling on the National Debt some $800 BILLION!


Let’s also put that last figure into perspective. For the first 204 years of this nation’s existence, until 1980, our total accumulated National Debt was approximately $850 Billion. Last week our Congress raised the ceiling by nearly the total accumulation of the first 204 years.


Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Rate It | View Ratings

Mike Folkerth Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Mike Folkerth is the author of "The Biggest Lie Ever Believed" and is not your run-of-the-mill author of finance and economics. The former real estate broker, developer, private real estate fund manager, auctioneer, Alaskan bush pilot, (more...)
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
   (Opens new browser window)

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Will Our Economy EVER Recover?

Fox News on Georgian Invasion; Not Exactly What They Wanted:

Paradigm Shift; Change Your Life:

U.S. Auto Industry is in Recession:

Housing Predictions:

Treasury and IRS Agree; Pension Freezing is Legal!

To View Comments or Join the Conversation:

Tell A Friend