Monday, July 07, 2008

Fannie Mac and Freddie Mac insolvent!

And Obama wants to loot the carcasses?
"even if Fannie and Freddie obtain an exemption from new accounting standards, that doesn't make them adequately capitalized. That just allows them to continue to pretend that they are.

In other news concerning the financial health of Fannie Mae and Freddie Mac, consider this change proposed by Barack Obama.
In the Boston Globe’s story about Barack Obama’s strong support for funneling government money to real estate developers (who often abandon the properties they build with government money) is this paragraph urging the “siphoning” of profits from Fannie Mae and Freddie Mac:

Obama has continued to support increased subsidies as a presidential candidate, calling for the creation of an Affordable Housing Trust Fund, which could distribute an estimated $500 million a year to developers. The money would be siphoned from the profits of two mortgage companies created and supervised by the federal government, Fannie Mae and Freddie Mac."

Read it all and worry......

No comments: