by E.L. Beck
Freddie and Fannie Crap Gold Eggs for Wall Street
8:59 am in Uncategorized by E.L. Beck
Despite all the blathering in early 2011, from both sides of the aisle, regarding attempts to wind down Fannie Mae and Freddie Mac (and here and here and here), securities guaranteed by these government-backed entities (yes, government backed… let’s no longer pretend U.S. taxpayers are not on the hook for these white elephants) are now at $1.72 trillion, compared to $1.2 trillion at this time last year, according to Bloomberg News this morning.
The continued existence of Freddie Mac & Fannie Mae serves Wall Street.
And let’s face it, considering how the Mac and Mae geese are shitting golden eggs right into Wall Street’s lap, these financially troubled mortgage giants are not going to be closed. Consider the following headlines since the beginning of 2011 to the present (in chronological order; headline abbreviations are mine):
Citi Dumped Bad Mortgages onto Mac
Wells Fargo Refuses to Settle w Mac and Mae
Taxpayers Pay Mac and Mae’s Legal Fees
Taxpayers Still at Risk from Mac and Mae
Fannie Mae Seeks $5.18 Billion More
S&P Lowers Mac and Mae Ratings
F Mac Uses Defective Analysis to settle w Bank of America
Mac and Mae Hesitate to Help Homeowners
Mae Killed Principal Reduction Program
Mae Refuses to Punish Countrywide
All of this, including the rise on mortgage-backed bonds, plays into the hands of Wall Street in one fashion or another.
With a track record like this, no Federal politician or cabinet member or agency with Wall-Street dirt on their knees is going to pull the plug on Mac and Mae… until the next downturn necessitates their demise.
D.C.? Just send the bailout bill to us middle-income taxpayers. We’ll happily cover it with all our riches.
