Right Thinking From The Left Coast
The Government is merely a servant -- merely a temporary servant; it cannot be its prerogative to determine what is right and what is wrong, and decide who is a patriot and who isn't. Its function is to obey orders, not originate them. - Mark Twain

Wednesday, September 15, 2010

What a scam!

Well, these leftists have no shame. Their newest attempt to screw us over while pretending to be doing good? Force the lending institutions they coerced by law to make bad loans to bail out the government’s bookies:

WASHINGTON – The nation’s largest banks have an obligation to pay some of the cost for bailing out mortgage buyers Fannie Mae and Freddie Mac because they sold them bad mortgages, a government regulator said Wednesday. Edward DeMarco, the acting director for the Federal Housing Finance Agency, said the banks this summer have refused to take back $11 billion in bad loans sold to the two government-controlled companies, in written testimony submitted for a House subcommittee hearing Wednesday. A third of those requests have been outstanding for at least three months. DeMarco said the banks have a legal obligation to buy back the loans and called the delays “a significant concern.” He said the government may take new steps to force those buybacks if “discussions do not yield reasonable outcomes soon.” In an interview with reporters after the hearing, DeMarco declined to give further details on what the government might do next. He said only that “we’re looking for contractual obligations to be fulfilled.”

The banks have an obligation? Why and under what law? Maybe that reform bill that just got passed that still left Freddie & Fannie able to continue doing more of the same? And do the politicians that passed the laws forcing these banks to lend to poor risks, and then convinced them to go along with that doomed plan to ignore the reality of economics, by telling them they could offload the risk on the US tax payer through Freddie & Fannie, also have a responsibility to pay us tax payers back?

What we have here is a duplicitous attempt to cover the fact that Freddie & Fannie are in huge trouble and in dire need of having government meddling on their behalf blocked, in a time these politicians now running the country know the American tax payer is pissed beyond belief at them using our tax dollars to pay off their buddies and prop up those entities they like. Guess who really will end up paying for this? We will, because this is basically nothing more than an underhanded scheme for these crooked collectivist big government loving politicians to appropriate tax dollars to cover their roles in the massive scam that caused our economic crisis.

The two mortgage giants nearly collapsed two years ago when the housing market went bust. The government stepped in to rescue them and it has cost taxpayers about $148 billion so far. The rescue is on track to be the most expensive piece of stabilizing the financial system.

This move is more of the same, and it is blatantly obvious that this is an attempt to avoid having to admit to the tax payer that they need to fork out even more monies to pay off for the mismanagement their cronies have done at Freddie & Fannie. BTW. For you collectivists that think this is actually a smart move I have but one question: who do you think will then pay the banks so they don’t have to close their doors, huh?

Posted by AlexinCT on 09/15/10 at 04:01 PM in Elections   Election 2010   Left Wing Idiocy   Politics   Law, & Economics  • (0) TrackbacksPermalink
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