Fannie And Freddie; The Bottomless Pit

Whatever the fix, the money spent will not be recovered, said Alex Pollock, a former president of the Federal Home Loan Bank of Chicago who is now a fellow at the Washington-based American Enterprise Institute. “It doesn’t matter what you do or don’t do, Fannie and Freddie will cost a lot of money,” Pollock said. “The money is already lost. There’s an attempt to try to avert your eyes.”

Quoting Sen. Gregg, here is the herd of elephants in the room, (no mention of these two in the Dodd financial reform bill):

Fannie-Freddie Fix at $160 Billion With $1 Trillion Worst Case

June 14 (Bloomberg) — The cost of fixing Fannie Mae and Freddie Mac, the mortgage companies that last year bought or guaranteed three-quarters of all U.S. home loans, will be at least $160 billion and could grow to as much as $1 trillion after the biggest bailout in American history.

Fannie and Freddie, now 80 percent owned by U.S. taxpayers, already have drawn $145 billion from an unlimited line of government credit granted to ensure that home buyers can get loans while the private housing-finance industry is moribund. That surpasses the amount spent on rescues of American International Group Inc., General Motors Co. or Citigroup Inc., which have begun repaying their debts.

“It is the mother of all bailouts,” said Edward Pinto, a former chief credit officer at Fannie Mae, who is now a consultant to the mortgage-finance industry.

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Three Republicans Vote For Cloture On The Senate Financial Bill (UPDATED: Video)

Are you ready for a new federal government agency (Office Of Financial Research) under the direction of Treasury that has a $500 BILLION DOLLAR YEARLY BUDGET, can invest appropriations it is not using, and the profits are no longer your money? Are you ready for every single monetary transaction you make to be in a … Read more

Obama Stands His Ground With Republicans On ‘Financial Reform’

Does anyone find it odd that Bambi ‘holds’ his ground with the republicans but chokes with the Somali Pirates and bows to just about everybody else?

Mr. Kuttner obviously has not read Dodd’s 1400 page masterpiece enough to know that it allows for bailouts in perpetuity (pg 1379).  I haven’t even gotten all the way through the book on financial reform and I already know that creating a new government agency with a $500 BILLION DOLLAR YEARLY budget to keep track of every single financial transaction known to mankind, invest money, and then report on the firms they have invested in probably isn’t the best idea.  This could be one of the reasons why Barry isn’t budging when it comes to ‘financial reform’.  I’m sure there are more progressive ideas tucked inside this bill.

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Gerald Celente’s Take On Financial Reform (UPDATED)

Gerald Celente of Trends Research Institute believes that the financial reform bill being put forward by Chris Dodd is just more dog and pony show coming out of the District.  Mr. Celente does not pull any punches in this interview with Russia Today about the players involved and the massive amount of money that is flowing back and forth between D.C. and Wall Street.  He even talks about the $10 million that Dodd has received from the financial sector in five years, and Greg Craig slithering from the White House over to Goldman Sachs to help out.

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