Wednesday, December 10, 2008

Congressional Hearings on Fanny Mae & Freddie Mac Fast Money Crowd

Squeezed out of the news of the Chicago Sensation, Crooked Governor Rod Blagojevich, were the congressional hearings on the troubled Fanny Mae and Freddie Mac government-sponsored institutions. There’s no doubt Fanny and Freddie played fast and loose and that their overpaid executives are largely responsible for the collapse in the credit markets. The sad thing is that these failed “leaders” of the 2 major financial housing institutions drained the taxpayers of millions of dollars in salaries and bonuses. Big Democratic party contributors and Obama advisors like Jim Johnson and Franklin Raines were unable to tell the congressional investigators why they ignored their own risk officers and continued to make Alt-A no documentation loans to people they knew couldn’t pay them back. This unchecked speculation and greed causes the housing piƱata to explode. Even stinkier is that the risk officer who advised Fanny’s CEOs to restrain themselves was fired.

The records show that Fanny and Freddie made 150 billion in Alt-A no documentation loans. The result is that 8 billion dollars of the Fanny-Freddie loans are currently in default. That’s 8 bn in dead money debt having to be paid by the taxpayers in the butt-saving bailout.

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