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  • Fannie Mae

    Morning Bell: The Wrong Direction

    There is no doubt that past government intervention in the market, particularly by Fannie Mae and Freddie Mac, is largely to blame for the current financial turmoil. And while past government intervention cannot be used to justify further government interference, we also have to ask how much unnecessary pain the … More

    Morning Bell: Did Ken Lay Get to Write Sarbanes-Oxley?

    The $700 billion that Treasury Secretary Hank Paulson is requesting from Congress to restore liquidity in the financial markets is a breathtaking sum of money. But it is also important to remember Paulson has already committed $200 billion to recapitalize Fannie Mae and Freddie Mac. The size of their bailout … More

    The Left Has Learned Nothing from Fannie/Freddie Failure

    Earlier this month, the United States doubled its outstanding debt obligations in a single day. What happened? Taxpayers were forced to honor the implicit guarantee the federal government made years ago to back up Freddie Mac and Fannie Mae’s financial obligations. Freddie and Fannie are at the heart of the … More

    Morning Bell: A Vicious Cycle of Their Own Making

    In what some observers are calling a reshaping of Wall Street, two of the world’s largest investment banks, Merrill Lynch and Lehman Brothers, are set to disappear. Lehman has announced it will file for Chapter 11 bankruptcy protection, and Merrill Lynch was bought by Bank of America. For all the … More

    Mortgage Socialization

    Fannie Mae and Freddie Mac were created during the New Deal by the Roosevelt administration in order increase home ownership. With government backing and price controls, the supply of housing was artificially increased, with the funds coming from the taxpayer. Even when Fannie and Freddie were made into government sponsored … More

    Tapper Wrong, Palin Right on Fannie and Freddie

    This Saturday, Sarah Palin told a crowd in Colorado Springs, CO: “The fact is that Fannie Mae and Freddie Mac have gotten too big and too expensive to the taxpayers. The McCain-Palin administration will make them smaller and smarter and more effective for homeowners who need help.” Now some in … More

    Morning Bell: Big Government Fails Again

    This weekend Treasury Secretary Henry Paulson announced that mortgage giants Freddie Mac and Fannie Mae will be placed in a government conservatorship that closely resembles a bankruptcy reorganization. The move puts U.S. taxpayers on the hook for $5.4 trillion in outstanding mortgage debt and commits the government to provide as … More

    Maybe a Giant Government Mortgage Financing Duopoly is Not in the Interests of American Homeowners

    When liberals in Congress sold the American people on the need to risk $300 billion to bail out banks that made irresponsible loans to bad credit risks, they insisted big government was the answer to the housing crisis. For example, when defending the bill Barack Obama told Tom Brokaw: “What … More

    Morning Bell: The Left's Crony Capitalism Explodes

    Yesterday all three major financial indexes fell after an article in Barron’s reported the Bush Administration is planning to exercise the authority to recapitalize Fannie Mae and Freddie Mac. A Treasury spokeswoman denied the report, but FusionIQ CEO and equity-research director Barry Ritholtz told the AP: “You don’t pass that … More

    Morning Bell: Not So 'Smart' Housing Policy

    This Wednesday, government-sponsored entity Freddie Mac announced that it lost $2.8 billion in just the last quarter alone from foreclosures and other related expenses. Both Freddie, and its sister Fannie Mae, are at the core of the recent housing finance crisis. Freddie and Fannie help finance 40% of all U.S. … More