Posted by
ROWELG on Tuesday, September 09, 2008 3:50:58 PM
Many in the media complain about the Freddie Mac and Fanny May take over by government to keep the lower classes in housing. Liberals claim Bush is bailing out the rich. Many complain that nationalizing financing is anti-capitalism. Rather than blame Bush, one needs to research into the factual history as to who created these monsters in the first place, and why they were created. I say blame the creators.
In truth, it is backsliding a failed private enterprise back to its original government bureaucratic creations.. It is a federal taking back its original liberal collectivist creations.
The roots go back to 1866 desegregation after the civil war and with the first civil rights act. Democrat President Andrew Johnson vetoed the bill, saying that blacks were not qualified for United States citizenship. The Republicans in congress overrode the presidential veto on April 9, 1866. The approved act declared that "all persons born in the United were citizens. Citizens were "of every race and color" could make and enforce contracts, sue and be sued, give evidence in court, and inherit, purchase, lease, sell, hold, and convey real estate and personal property
Fannie Mae was founded as a government agency in 1938 as a central part of Democrat Franklin Delano Roosevelt's New Deal to provide liquidity to the mortgage market, to collectively spread the risk of bad loans. For the next 30 years, Fannie Mae held a virtual monopoly on the secondary mortgage market in the United States. The secondary mortgage market is the market for the sale of securities or debt instruments secured by the assessment of mortgage loans. The risk of individual loans is reduced by the collectivist aggregation process. The mortgage lender, commercial banks, or specialized firm group together many loans and sell grouped loans as securities called collateralized mortgage obligations.
Under Democrat President Lyndon B. Johnson, came The Fair Housing Act of 1968 (FHA) (42U.S.C.A. §§ 3601-3631) is also known as Title VIII of the CIVIL RIGHTS ACT of 1968. The Senate had 64 Democrats and 36 Republicans. Congress had 247 Democrats and 187 Republicans. Congress passed the act in an effort to impose a comprehensive solution to the problem of unlawful discrimination in housing based on race, color, sex, national origin, or religion. The Fair Housing Act has become a central feature of modern CIVIL RIGHTS enforcement, enabling persons in the protected classes to rent or own residential property in areas that were previously segregated. (desegregation)
In 1968, to remove the federal activity of Fannie Mae from the annual balance sheet of the federal budget, it was converted into a private corporation. To help balance the federal budget, part of Fannie Mae was converted to a private corporation. To provide competition in the secondary mortgage market, and to end Fannie Mae's monopoly, Congress chartered Freddie Mac as a private corporation.
The Federal Home Loan Mortgage Corporation (FHLMC) (NYSE: FRE), commonly known as Freddie Mac, was a privately-owned and run government sponsored enterprise (GSE) of the United States federal government. To drive desegregation, Freddie Mac was created to further expand the secondary market for mortgages in the US. Freddie Mac buys risk mortgages on the secondary market, pools them, and sells them as mortgage-backed securities to investors on the open market. This secondary mortgage market increases the supply of money available for mortgages lending and increases the money available for new home purchases.
Fannie Mae and Freddie Mac, provides banks and other financial institutions with fresh money to make new loans. It allows an increasing number of protected class borrowers, often with poor credit, to buy homes. A crisis in the making, an accident waiting to happen, which finally happened.
Just another Washington enterprise, like the post office, social security, medicare, education, and the liberals want Washington to nationalize health care!