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#1331993 - 01/27/10 05:05 PM fannie and freddie pressure - overt now
straw Offline
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straw
Joined: Nov 2002
Posts: 9,121
Taxpayers may look at the unlimited federal credit line now enjoyed by Fannie Mae and Freddie Mac and see disaster. But New York Senator Chuck Schumer sees opportunity.

Yesterday he demanded that the two failed mortgage giants guarantee low rent for tenants in a Manhattan property they now own after the owner defaulted. As they say in Democratic Washington, a crisis is a terrible thing to waste.

Recently we told you about the Treasury's Christmas Eve announcement that after chewing through $111 billion from taxpayers, Fan and Fred can now consume an unlimited amount of cash from the U.S. Treasury. The companies have been losing billions each quarter to serve President Obama's political goal of modifying troubled mortgages. They can lose still more by serving Mr. Schumer.

In truth, they already are. The New York lawmaker has pioneered the use of the Fannie and Freddie earmark, having successfully pressured Fannie to sell another property in the Bronx to an affordable housing group. But his appetite is growing for taxpayer cash to dole out to his constituents. Whereas the Bronx housing complex was worth a mere $29 million, Fan and Fred's interest in the mammoth Stuyvesant Town complex in Manhattan could run into the billions.

The New York Observer quotes Mr. Schumer saying that after Stuyvesant Town's owners defaulted, "Now Fannie and Freddie must guide this process to a conclusion with the least amount of impact on current tenants and families. I am going to watch them like a hawk to make sure they do just that."

While Mr. Schumer seems to have developed a nice racket, we can't help but wonder if Fan and Fred own any properties in the state of Nebraska. Can Senator Ben Nelson perhaps get a piece of this action?

WSJ Op-ed section

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#1332127 - 01/27/10 06:33 PM Re: fannie and freddie pressure - overt now straw
YosemiteSamIAm Offline
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Joined: Jan 2004
Posts: 2,795
Guess
"Can Senator Ben Nelson perhaps get a piece of this action?"

If Ben turns many more "tricks" he may spontaneously combust!
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Sorry, did I just use my outside voice?

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#1332320 - 01/27/10 08:44 PM Re: fannie and freddie pressure - overt now YosemiteSamIAm
Pale Rider Offline
10K Club
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Joined: Aug 2002
Posts: 34,318
under the Lone Star
nice how the congress put the American people on the hook in an unlimited sense for the debts of these two entities...

and the way they did it, in the dead of the night on Christmas eve or some holiday.............
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Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


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#1332328 - 01/27/10 08:47 PM Re: fannie and freddie pressure - overt now Pale Rider
straw Offline
Power Poster
straw
Joined: Nov 2002
Posts: 9,121
transparency has a new meaning.

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#1332357 - 01/27/10 08:57 PM Re: fannie and freddie pressure - overt now straw
Pale Rider Offline
10K Club
Pale Rider
Joined: Aug 2002
Posts: 34,318
under the Lone Star
and having the most ethical Congress EVER!!!!!!!!!!
_________________________
Societies that do not find work in and of itself "pleasing to God and requisite to Man," tend to be highly corrupt.


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