Fannie Mae: Another New Deal Monstrosity
Fannie Mae, an engine of the current housing mess, is one of the U.S. government's most ill-fated welfare creations, write Karen De Coster and Eric Englund. From the outset there were plans to swell Fannie's waistline by expanding her purchasing authority. At about the time the American soldiers were coming home from WWII, Fannie was enabled to purchase loans guaranteed by the Veterans Administration, in addition to the Federal Housing Administration-insured mortgages it was already purchasing. This creation and expansion of a secondary market for mortgages was a vital boost to the supply of lendable money in the United States. FULL ARTICLE
Comments (16)
Ah, America's housing socialism!
This issue is very personal to me -- the house that my wife and I bought a couple of years ago cost nearly seven times more than the price my father paid in 1971 for the house I grew up in. We have had to relocate twice, out of state, with an infant in tow, just to find a place where housing was affordable.
This criminal housing inflation scheme has a direct, daily influence on our lives, and has altered the course of our lives and our son's life, all for the worse.
Published: July 2, 2007 9:10 AM
Fannie Mae is but one aspect of the government takeover of the economy via its corruption of money and the grotesque financial excesses that this spawns:
http://www.ft.com/cms/s/d5f91f6e-2513-11dc-bf47-000b5df10621.html
It will all end very, very badly.
Published: July 2, 2007 9:26 AM
Yes, it will. It will start with a housing crash. Then spread via CDOs to the stock market. Bernanke will ensure that the Fed is at the ready to "avoid" the mistakes of 1929, by inflating the crap out of the currency, printing our way out of financial ruin.
I just wonder how long it will take before merchants are imprisoned for violating the inevitable price-fixing laws. Maybe a few will be executed in the street, a la Chiang Kai-Shek.
How many times does this have to happen before people see the pattern?
Published: July 2, 2007 9:50 AM
As Henry Ford long ago said, "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." And this was at a time when the average American was far more economically literate than he/she is today. In fact, thanks to our dumbed-down "educational" system, the average American hasn't the slightest clue what money is or what The Secrets of the Temple are -- http://www.williamgreider.com/books/secrets
On the other hand, humanity has never before been subjected to a worldwide system if irredeemable fiat currencies, and when this, the greatest fraud in human history, finally collapses (as it inevitably must), perhaps enough Americans will come to their senses that they never let their government control money and banking again.
Better yet, maybe enough Americans will come to their senses to wash their hands of Rome-on-the-Potomac and put an end, at long last, to our miserably failed experiment in "federalism."
Published: July 2, 2007 10:57 AM
Some people benefit from government interventionism - and not just in the short term (i.e. the bust will not wipe them out).
For example the head of Fannie Mae (an ex Clinton Administration person) has managed to get 125 million Dollars over his time in office. Nice "work" if you can get it.
Published: July 2, 2007 2:53 PM
I have read many comments lately from writers who see things the way you/we do. Lots of people realize we have a toilet paper/fiat currency. Lots of people know what a fraud the so-called Federal Reserve is. They are intentionally creating inflation because it serves their purposes. What I would like to know is: why do we continue to put up with this fraud? They are ruining our money and destroying our wealth. It is simply wrong.
Published: July 2, 2007 10:57 PM
Kathy H,
The powers that be will perpetuate the fraud (aided and abetted by the profound ignorance of the people) as long as possible, knowing that the end will be the worse the longer it's postponed but also at the ready with their golden parachutes when the poop finally hits the propeller. In the meantime, they suppress the price of gold -- http://www.gata.org/about -- lest it expose their fiat for the toilet paper you rightly said it is.
What to do? Play along and load up on gold (and silver) while supplies last, secure in the knowledge that they will reach their inflation-adjusted highs -- and perhaps multiples thereof -- in the coming years (methinks before the Federal Reserve Note's 100th birthday in 1914).
Published: July 3, 2007 8:32 AM
"The powers that be will perpetuate the fraud..." This says it all. The Republicrats seek to enrich themselves while holding onto power, while the serfs work hard every day and pay taxes to the "machine". I haven't always been this cynical, but watching what has been happening the past 10-15 years could jade anyone. Buying gold is a fine suggestion, but it does nothing to remove the Republicrat cockroaches from power. We need to shine more light on them... and watch the little guys scurry away. Anyone have a heavy shoe?
Published: July 3, 2007 12:29 PM
It was ever thus, Kathy, but the glory days of the state may well be behind us, not only because the global fiat fraud must one day come to an end but because technology is empowering the individual as never before. Yes, the state is also empowered, but if it can't defend itself against small teams of non-state actors (AKA "terrorists"), how can it expect to defend itself against increasingly small, powerful devices in the hands of virtually every individual on the planet?
Look at the iPhone!
http://www.lewrockwell.com/carson/carson26.html
Published: July 3, 2007 3:53 PM
I just wonder how long it will take before merchants are imprisoned for violating the inevitable price-fixing laws. Maybe a few will be executed in the street, a la Chiang Kai-Shek. How many times does this have to happen before people see the pattern?
I see that Zimbabwe is the latest, unfortunate perpetrator of the age-old con-and-murder game.
Published: July 3, 2007 11:46 PM
Whenever someone mentions that the American Dream is to own a home, all of us need to remind that speaker that the American Dream is Freedom! And state why this system of home ownership today is the antithesis of freedom.
If a newcomer from tyranny came to our shores and we asked him. Do you want to participate in the American Dream? Does anyone think that he would reply by saying "Yes, I want a house that is backed by Fannie Mae, with subsidized rates and a right to access credit and the right to qualify for the lowest-cost mortgage possible." Of course the newcomer would not say that, he would say he wanted freedom and that was his American Dream. If we repeat this often enough people will begin to believe it.
Published: July 21, 2007 7:25 PM
Karen and Eric
Time for a new chart?
http://finance.yahoo.com/echarts?s=FNM#chart2:symbol=fnm;range=1y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
Published: July 11, 2008 4:00 PM
Karen and Eric
Time for a new chart?
http://finance.yahoo.com/echarts?s=FNM#chart2:symbol=fnm;range=1y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
Published: July 11, 2008 4:05 PM
Karen and Eric
Time for a new chart?
http://finance.yahoo.com/echarts?s=FNM#chart2:symbol=fnm;range=1y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
Published: July 11, 2008 4:09 PM
Fannie Mae was more than just an engine of the current housing mess. Fannie Mae's automated underwriting software accelerated the mess to phenomenal proportions. It is a joke that the taxpayers may be bailing out what was long touted to be one of the most profitable government programs in history.
Published: July 14, 2008 8:17 PM
Fannie Mae was more than just an engine of the current housing mess. Fannie Mae's automated underwriting software accelerated the mess to phenomenal proportions. It is a joke that the taxpayers may be bailing out what was long touted to be one of the most profitable government programs in history.
Published: July 14, 2008 8:17 PM