The $200 billion caps on Freddie and Fannie just won’t get the job done, so let’s give them a blank check for whatever they need. Guess the $400 billion is already gone, so why not throw another few billion at these losers.
The treasury announced the caps are lifted and they will have unlimited access to bailout funds through 2012. In return for your tax money, you will get preferred stock paying 10% interest. This was all announced on Christmas Eve. That was a busy day in Washington, health care reform and billions more for old Freddie and Fannie. Earlier in the week the pay plans for the representative presidents of Fred and Fannie were announced at $6 million each. All that for tanking two loser companies further. All done without any approval from congress. The pay czar must have slept through this one.
The treasury said a plan to extricate the government from ownership in these companies will come in February. Probably, another request for some more of your money to be put in the pot will accompany that plan.
This is all hush, hush. The compensation for the management of Freddie and Fannie get no notice from mainstream media. The need for $400 billion to save them, nothing.
The fact that the Federal Government now backs nine of every ten mortgages made in the US, no attention.
Just another disaster waiting to happen. Another black hole to throw your tax dollars into. And, not chump change either. It is the same amount the health care reform plans will take out of Medicare.
Barney Frank, Chris Dodd, and Dick Durbin, the gents who created this mess with Freddie and Fannie, are busy working on other bad ideas and still getting a pass on the Freddie and Fannie mess.
Meanwhile the Tea Party movement gains momentum.
