Hi Hueyone, "If Martha Stewart is the face of capitalist excess, Fannie Mae and Freddie Mac are the poster children for government-sponsored gluttony. The potential fall of Freddie Mac or Fannie Mae could rival the savings-and-loan collapse of the 1980s. Too bad the Martha bashers, blind to the far greater catastrophes of market socialism, won't pay attention until it's too late."
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"So, what's wrong with this picture?"
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Mother of all financial scams
By Michelle Malkin
THE WASHINGTON TIMES
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"Political appointees to the companies' [Freddie Mac and Fannie Mae] boards pocket millions in stock options to bolster support on Capitol Hill."
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"Freddie Mac and Fannie Mae each receive $2.25 billion lines of credit with the U.S. Treasury. These special pipelines give the institutions an implied federal guarantee available to no other private sector competitors in the mortgage market. That protection makes them immune to the costs normally associated with riskier and riskier behavior."
"Moreover, Fannie Mae and Freddie Mac are not required to pay state and local income taxes.
"In addition, the standard for how much money the government requires them to keep on hand in case homebuyers default on their mortgages is lower for Freddie Mac and Fannie Mae than for fully private banks and thrifts."
"The two corporations receive an estimated $10 billion a year in hidden taxpayer subsidies."
..."profit-side capitalism and loss-side socialism." When things go right for Freddie Mac and Fannie Mae, they keep the profits. But when things go wrong, taxpayers not just private shareholders, managers and employees will be on the hook."
Message 19030483
Regards,
Amy J
PS Isn't Bechtel (a government contractor) under some type of investigation or review? It's a firm that generates billions in revenue under the protective covers of a private company. Maybe they're squeaking clean, but any firm generating billions from the government and taxpayers, under the protective covers of a private company, makes me a bit curious. But it's easier to complain about the things we know about. |
