Submitted by Mort Tennyson (not verified) on October 1, 2008 - 10:04am.
"If Fannie and Freddie "continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing potential systemic risk down the road" "We are placing the total financial system of the future at substantial risk" - Alan Greenspan "It's a classic case of socializing the risk while privatizing the profit. The Democrats and few Republicans who oppose portfolio limitations could not possibly do so if their constituents understood what they were doing." - Wallison "Without their (Frannie and Freddie) checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed" - Kevin Hassett PAC contributions from Freddie and Fannie to senators: Christopher Dodd - $165,000+ (Senate Banking Committee Chairman) Hillary Clinton - $75,000+ Barack Obama - $125,000+ Senator John McCain co-sponsored S. 190, a bill that would have fixed this mess back in 2005. Take a look at Inflation Data dot com, notice the charts where the inflation rate neared dangerous deflation a couple of times, the Fed acted and lowered the prime rate, triggering the real estate bubble to get the economy back on a inflationary trend. Obviously all the "goodwill" socialized housing risky attempts (CRI & GSE's) only work when real estate prices continue to climb, not during a price drop, especially a dramatic drop that's occurring now. The problem clearly lays in the huge mess that Congress and all it's many lawmakers create. They can't act together well at all. Too many chiefs and no indians. This is why corporations run so much better. A board elects a CEO, if he/she doesn't return a profit to shareholders, they are replaced with someone else that will. It's time to disband Congress. It can't act in time, it can't act well for the best interests of our country. We can still have three parts of the government, just one person to run each branch instead of many.
Great Quotes for History
"If Fannie and Freddie "continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing potential systemic risk down the road" "We are placing the total financial system of the future at substantial risk" - Alan Greenspan "It's a classic case of socializing the risk while privatizing the profit. The Democrats and few Republicans who oppose portfolio limitations could not possibly do so if their constituents understood what they were doing." - Wallison "Without their (Frannie and Freddie) checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed" - Kevin Hassett PAC contributions from Freddie and Fannie to senators: Christopher Dodd - $165,000+ (Senate Banking Committee Chairman) Hillary Clinton - $75,000+ Barack Obama - $125,000+ Senator John McCain co-sponsored S. 190, a bill that would have fixed this mess back in 2005. Take a look at Inflation Data dot com, notice the charts where the inflation rate neared dangerous deflation a couple of times, the Fed acted and lowered the prime rate, triggering the real estate bubble to get the economy back on a inflationary trend. Obviously all the "goodwill" socialized housing risky attempts (CRI & GSE's) only work when real estate prices continue to climb, not during a price drop, especially a dramatic drop that's occurring now. The problem clearly lays in the huge mess that Congress and all it's many lawmakers create. They can't act together well at all. Too many chiefs and no indians. This is why corporations run so much better. A board elects a CEO, if he/she doesn't return a profit to shareholders, they are replaced with someone else that will. It's time to disband Congress. It can't act in time, it can't act well for the best interests of our country. We can still have three parts of the government, just one person to run each branch instead of many.