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  • Morning Bell: When Will Our Progressive Corporatism Nightmare End?

    $154 billion. That is the amount of taxpayer money that will be needed to bail out Fannie Mae and Freddie Mac according to a new “stress test” performed by the Federal Housing Finance Agency. And that is the good news. If the economy dips into a second recession and foreclosures rise, the Fannie and Freddie bailout could nearly double in size. The agency, which oversees Fannie and Freddie, released the numbers “to inform public debate about the future of the two companies” ahead of expected Obama administration proposals slated for early next year. But if you are hoping for major policy changes from this administration, don’t hold your breath.

    In August, Treasury Secretary Timothy Geithner hosted a meeting in the Treasury’s Cash Room with select bankers and administration cheerleaders like Keynesian economist Mark Zandi. This is how Daily Report for Executives summarized the meeting:

    The government must continue to play a fundamental role in the future of housing finance, a panel of experts agreed at a conference convened by the Obama administration to begin to frame a comprehensive housing finance reform proposal for delivery to Congress by January 2011.

    Just what is the record of government “experts” in preventing financial catastrophe? Well, the 3,814 employees of the Securities Exchange Commission, the 7,241 employees of the FDIC, the 3,216 employees of the Comptroller of the Currency, and the 3,204 employees of the Federal Housing Administration all failed to see, yet alone prevent, the recent financial collapse.

    And just how “fundamental” a role is government playing in housing finance today? Well, in the first quarter of 2010, Fannie Mae and Freddie Mac, combined with the Federal Housing Administration and the Government National Mortgage Association, funded and/or guaranteed 96.5 percent of residential mortgages to homebuyers or homeowners refinancing for an existing home. And thanks to federal subsidies and bank mergers “encouraged” by the FDIC, a staggering 60.26 percent of all residential mortgages in the first quarter of 2010 originated through just four financial institutions: Wells Fargo, Bank of America, JPMorgan Chase and Ally Bank.

    And these banks are not suffering from their government-granted monopoly. Wells Fargo, for example, reported $4.48 billion in mortgage banking income for the first six months of 2010. And the Securities Industry and Financial Markets Association (SIFMA) is bullish about its continuing partnership with the Obama White House. A recent SIFMA press release reads:

    While we recognize that there is no single right answer to GSE reform, it is critical that, in addressing this complex task, the benefits to consumers and the economy which are created under the current system be preserved. We encourage policymakers to fix what’s broken without dismantling the aspects that have provided efficient, cost effective lending and benefits to our economy for the last 30 years.

    What planet is SIFMA on? The homeownership rates in Australia, Canada, Ireland, Spain and the United Kingdom mirror those in the United States. And their citizens have accomplished this without massive subsidies and interference from the federal government. On the other hand, our “efficient, cost effective” government-managed system led to a massive housing bubble and collapse that millions of Americans are still paying for. Heritage Foundation Senior Research Fellow Ron Utt comments:

    At the moment, the federal government is the mortgage finance market. Today, what passes for the private-sector mortgage market is little more than a government-fostered concentration of private contractors earning attractive fees for their limited but lucrative role in the new federal mortgage finance system.

    The Progressive Corporatist partnership between the Obama administration and a few of the nation’s largest financial institutions represents a fundamental threat to our nation’s economy. Economic freedom is the key to a vibrant, innovative and growing economy. But, for the first time ever in 2010, the United States fell from the ranks of the economically “free,” as measured by The Heritage Foundation’s Index of Economic Freedom largely due to the TARP bailouts. Restoring the United States to a “Free Economy” must be one of the next Congress’ top priorities.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    27 Responses to Morning Bell: When Will Our Progressive Corporatism Nightmare End?

    1. g55rumpy,USA says:

      well it`s been hanging around for a long ,long time.

    2. Sue Marie, Detroit says:

      Every one vote for the most conservative candidate you possible can. Government is good at military, and police and fire protection. Let the local banks decide who they want to lend money to. Obama's socialism works for the ruling class (AKA George Soros). The country class (AKA tax payers who pay for everything) are being destroyed by the Fannie May and Freddie Mac disaster.

    3. Gravytrain, North Ca says:

      Remember when Barney wanted Freddie and Fannie to make more loans to people that could not afford to make the payments.

      He assured us that there was no problem…. Just make loans!

    4. NeoConVet says:

      This mortgage mess continues to focus on the obvious failures of Fanny, Freddy, the 19,000 or so federal employees responsible for monitoring, regulating etc and the current resident fools in Congress. What IS NOT well defined is the FRAUD of the Banks lumping these bad loans togethor and passing them to Fanny & Freddy as gold! The banks liability should be huge and they should be allowed to fail for contributing to this massive theft of tax payer funds. They knew this stuff was meer dog droppings and now want to wash their hands?? Many belong in jail for profiting from this and the stock holders should be screaming for blood as their investment goes the way of GM stock holders.

    5. Betty, Lafayette Ind says:

      voter fraud already in place cried vultures, "SO" is final warning cried population

      America's pearl Liberty handed over to swain, beast of the field where hounds were to protect. The hounds bellies full went to sleep. Unable to catch the slightest smell before the nose. Whole earth bound together economically. No matter the circumstance I would not recommend tax dodge for anyone. Each heart should be asking with-in. When the fire of pure truth passes over, will I see blood of others on my hands? Swain, beast of the field see no value in a stone as a pearl. To beast, their belly alone matters. That is what America has become. The elect, dwelling in tax free status stumbled over their pearl to lowest degree. Went the way worst than sleep they became drunkards. Drunk upon wine from the pearl. Result the elect status given to any list wishing to be upon it. Craziness, chaos, each going their way for another day the most precious pearl invisible. Upon the ground, vultures surround, mud pit deep, weeds shed not a tear say it is only a stupid stone laying here.

      Thick darkness covers the land who was to watch and guard the pearl of great value. Not one fit place for the value of the pearl to be acknowledged.

      Solution is here and solution comes. It will burn down at the hand of the one who gave her the pearl to guard, protect, love beyond all else upon the earth.

      You know it is the body of the tea party wrapped around that pearl for last call warning it was not to be destroyed.

      1776 Chariots Covenant Choice, 1776

      2010 Chariots, Covenant, Choice, 2010

    6. Melissa, Fargo says:

      I understand the government involvement in providing low income housing (rent, not own). And, I understand the government getting involved in home mortgages insofar as to prevent financial fraud. I do not understand the government getting involved in home mortgages to make them easier for people to own homes. For generations, the dream of home ownership spurred people to work hard and practice their own personal fiscal responsibility.

    7. Amannda, Redmond WA says:

      As conservatives we need to come together and realize the label "liberal" is seen so negatively they need to change their name. They have chosen "progressive". Sounds great, anybody would want to be associated with "progressive". Conservatives have fallen right into their hands and have allowed and joined in on the name change. We have exposed them for what they are, they gathered negative impressions and now we allow them to come up with a new name to remake their image. Do not allow this.

      Do not call them Progressives, Call them Liberals… they have earned it.

    8. Al Reasin, Conowingo says:

      Yes, all those agencies and employees missed the signs of fraud and financial collapse. What is worse, many people warned them and they ignored the warnings. These agencies have their own reality and they usually cannot see beyond it and don't think outsiders "know anything". I would place congress in that category too.

      When I managed major projects, I would go at times to disinterested people who had the expertise I needed and present an overview of my problem and as well press my people for the "what ifs". Yes, I had to make the decision and live or die by it with no excuses about my advice or what went on before (unlike this president), but I wanted the most complete analysis of what "could happen" given the facts. Now, I could not waste days on this, but I could certainly get timely information from outside of my organization's reality to help keep me from making a bad decision. At times I would also go to the craft, the hands on guys, to get their input.

      I'm not an ivory tower type guy and in the beginning of a project I told everyone that I wanted their honest input, but that the final decision and responsibility for that decision was mine; reminding them that failure to informed me and allowing me to make a bad decision, while for most it was not their specific responsibly to do so, would reflect on all of us in the organization in the end.

      Unfortunately in government heads never seem to roll for really bad decisions; instead they get promoted or move on to more lucrative positions.

    9. Blair Franconia, NH says:

      The problem is that corporations give to both parties. I don't know if that's good or bad. I don't have a college degree and to quote Barack Obama during a debate at the

      Saddleback Church, "that's above my pay grade." :) Seriously. I defer to the "experts."

      However, the "experts" don't know nothin' about nothin'.

    10. Richard Cancemi, Arl says:

      Like the Charge of the Light Brigade, onward and onward drove the Progressives in government into the valley of debt! The difference is that they don't suffer; we do!

      At the end of that disastrous valley lies Socialism and death to individual freedoms.

      I hope and pray that the voters receive the gift of Common Sense and understand that it is Conservatism that will save us from the debacle.

    11. toledofan says:

      The answer to the problem is simple; vote as many of these liberal, progressives, actually they are socialists, out of office in November and make sure that Obama is a one term President. Regardless of the politics, we're going to suffer some more because we the people put these folks in office, so, until they are voted out, we're stuck. It's clear to me that the Democrats have transformed their party into the Socialist Party of America, the Democrats are gone, these people are now on the path to make us look and be like Europe. Can you imagine us being like France, I can't, but, I'm sure the current Democrats can. Isn't that what they have been trying to put in place?

    12. Wayne A. Moore, In t says:

      Liberals have been moving us toward the no fault society for quite a while. Ya can't get rid of bad guys whether they are from the bottom or the top of our society. People today in general think that being free means doing whatever you please without consequence. The most prolific attitude can best be communicated as "Hooray for me and screw you". Holding persons or corporations accountable for their stupidity or misdeeds needs to be a top priority of our society. We have plenty of laws on the books and we don't need any more. We just need to have the intestinal fortitude to enforce them and prosecute to the fullest extent possible!

    13. Drew Page, IL says:

      This has got to stop. We have people in government who want the U.S. taxpayer to finance the home ownership of those who can't afford to pay the mortgage. As I see it, it is one more attempt to socialize the country. Yet another way to redistribute the wealth.

    14. Jeanne Stotler says:

      I did it the old fashion way, we, my late husband and I , worked for our home. Today I live in a home my son and I bought together, I provided half of the cost and he makes the payments since I am retired. I pay the utilities, cook and clean, my grandson and his father care for the yard when son is out of town/country on business. We drive American made cars and I buy American made when possible. I believe in this country I am a descendent from the Mayflower was a member of CAR, never joined DAR but eligble. My ancestors and those of my husband fought for our freedom and for what the Bill of Rights, Constitution and Articles of Confederation stand for, we need to get rid of people like George Soros, and those who are out to destroy our freedoms and turn us into a Socialist country. If you forget the past you are doomed to repeat it.

    15. Henry says:

      Everyone knew what was going on with the housing mess. Our government, banks ,builders, real estate agents, lets say it again, everyone was getting rich. They were living the good life at the expense of the working and saving tax payers. I am not so smart, however I was concerned about all the new homes being build. I thought people were coming from outer space to live in these new homes. There were new homes going up every second of the day.

      I have never had a new home. Why do I not receive a new home?

    16. Alexander J Clemenso says:

      Fix the problem at the source. No one reads the fine lines and the banks obviously aren't going to hold someone's hand through the whole process. They want their money, they're a bank and money is their business. What happens when all the money is gone though? What happens to the banks then? What is the Federal Reserve anyway, does anyone really know what it does? What about the child on the street of some run down town, what is he/she suppose to do if the banks don't have money. Oh that's right, beg or hope someone has the heart to help. Where's your heart america? Oh yea, it's in the money, i forgot.

    17. Steve Harris, New Yo says:

      If more is spent on bailing out Freddie and Fanny, where will the money go?

      Who holds the debt that the bailout will payoff?

      Why not let the creditors of Freddie and Fanny bear some of losses, after all they risked making the investment?

      None of the news stories on this are addressing these questions.

    18. Walter, Oregon says:

      "Checks and Balances",

      Can again lend stabilizing influence,

      If only we can air,

      Of the now overly immense,

      "White Elephant"

    19. Pingback: Morning Bell: When Will Our Progressive Corporatism Nightmare End? « South Capitol Street

    20. John Arizona says:

      NO, NO, NO!!! Barney Frank told us there was no problem with Freddie and Fannie, and that they were in good shape.

      And now we'll watch as the left wing loons re-elect that slob!

    21. Pingback: ADF Alliance Alert » Heritage Foundation: When will our Progressive Corporatism nightmare end?

    22. rosemarie, fresno says:

      SOME ONE NEEDS TO SEND SORO BACK TO GRICE , LORDY I FORGAT THE TRUW HIM OUT OF EUROPA, AS HE DID THE SAME THING TO HIS INVESTERS AS THE ONE THAT IS NOW IN PRISON, HOWE IN THE WORL DID SOROS GET IN , GET THAT SUCKER BACK TO EUROPA , WE DOND NEED THAT CRUD IN THE USA

    23. Carol In CA says:

      First of all Fanny May and Freddy Mac should not be bailed out not again, not now, not ever.

      This is what happens when the Governmant gets involved. Their intentions, on the surfice, seems noble. By making sure every one that wants a home can have a home. It has been my experience that there are some people that simply do not deserve a home. They do not take care of any thing up to and including the lawn. As a home owner and a car owner both need equal attention when it comes to maintance.

      So in steps the Government and the whole thing becomes a pie in the face and a well planned desaster. All orchistrated to throw the country into chaos and it has worked. You want to collapse a governemt? You want to create a desaster

      cause a man made desaster. Why else doese Mr. B HO, who by the way has had some of the finest economists our country has to offer, tell him just what to do and how to solve the problem, and he deliberately ignores their advice.

      And then to boot Mr. B HO plays the blame game when the fault lies solely on his shoulders. He will not listen, when any one tries to help he ridicules. The saddest part of all this is we have all been manipulated and continue to be manipulated by the puppet master Georg Soros. It's all one big game, being played by one man, his pawns and none of us know what the rules are.

      We didn't even catch on until recently, Some see the light and others choose to follow blindly, My question is. Why did Mr. B HO want to be president if he isn't up to the job? Any one can blame the other guy, children learn that at a very early age. They are never responsible and apparently neither is Mr. B HO.

      One day he will be though and we all have to hope it is soon so things can be turned around. Stimulus bill not working, 4 jobs bills not working, health bill not going to work not wanted. Mr. B HO has taken more trips and more vacations than President Bush took in 8 years. Mr. B HO is spending our money and he simply does not care just so long as he can collapse our government and way of life. If you do not pay the mortgage the lender forcloses. Right now China, Japan and Russia hold our mortgage we all better pray they do not forclose.

    24. Donna, Reno says:

      Letter to Wells Fargo Spokeswpman Vickee Adams,

      Dear Ms. Vickee Adams,

      In your recent Wells Fargo's press release, you declared that ""Our records show that Wells Fargo's foreclosure affidavits are accurate, When the company finds employees that don't follow procedure, it takes "corrective action."

      That's a lie. I can say for a fact that Wells Fargo made us fraudulent mortgage loan and foreclosed my home based on hugely inflated and fraudulent appraisal and refused to correct its mortgage fraud.

      Wells Fargo teamed up with its attorneys and spent last 4 years in Nevada courts defending its appraisal and mortgage fraud.

      Wells Fargo and its attorneys knew it’s Category C Felony to make mortgage loan based on fraudulent appraisal.

      Wells Fargo and its attorneys knew it’s Category C Felony to foreclose home based on fraudulent appraisal.

      Wells Fargo chose to violate the law and chose to defraud us.

      Hold Wells Fargo Accountable! Save American Dream! Restore banking integrity.

      Please sign the Petition at http://www.wellsfargomortgagefraud.com. Let our voice be heard!

    25. Stephanie says:

      How did Fannnie and Freddie get here? BUSHCO and Wall Street!!

    26. Stephanie says:

      12 year Majority and 8 yrs in executive office and Y'all wanna blame Obama?

    27. Dan Bandekow says:

      I wrote about this recently on my website. The power is not so much in corporations but how they are protected under the Bill of Rights and the 14th amendment as “Natural Born Citizens” this gives them the right the petition the government and all other rights of an individual citizen. It was not always like this, i go into much more detail in my article here:
      http://www.upfordebate.us/story.php?title=corpora

      I thought you might want to take a look at this and tell me what you think.

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