Just wanted to point out. How funny is it that Obama and his people are all busy talking about how Palin stacks up against Obama….not McCain. I really think its a losing proposition when you’re comparing the qualifications of a presidential candidate to those of the vice – presidential candidate.
“The White House on Monday said the multibillion-dollar bailout of mortgage giants Fannie Mae and Freddie Mac could have been avoided if Congress had acted years ago when President Bush expressed concern about the way the two companies were set up.
The federal government seized control of the two companies over the weekend as a stopgap measure that could cost taxpayers as much as $200 billion.” Read more
Let me break this down a little bit for you. Fannie Mae was started by FDR as part of the “New Deal”, and held a virtual monopoly on the secondary Mortgage market for years. It was converted to a “private company” to take it off the federal budget sheets in 1968. In 1970 Freddi Mac was created as a “private company” by the government, to end that monopoly. Sometime in the last 15-20 years (not sure exactly when) the government told the mortgage industry it had to give more people the opportunity to get a mortgage and buy a house. This was a contributing factor in the whole “sub-prime mortgage” problems that have been going on for the last 12-24 months. Fannie Mae and Freddie Mac, have been operating basically as a shared monopoly since Freddie’s creation. The two companies made several “sub-prime” loans.
Now the US Fedzilla (thanks Ted Nugent) has bailed out these two companies at we the taxpayers’ expense. So basically the government created a mess, now they’re making us pay to clean it up. Yet another reason we need to make government smaller not bigger.