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Is this what Barney Frank had in mind in 2003?

When Charles E. Haldeman Jr. became Freddie Mac‘s chief executive officer in August, the ailing housing-finance giant had already consumed $51 billion of government money to stay afloat. It’s likely to need even more.Freddie’s federal overseers nevertheless have instructed Mr. Haldeman to focus on something that isn’t likely to make the bleak balance sheet look any better: carrying out the Obama administration plan to allow defaulted borrowers to hang onto their homes.

Pathetic. Only $111 billion and counting.

On Dec. 24, Treasury said there would be no limit to the taxpayer money it was willing to deploy over the next three years to keep the two companies afloat, doing away with the previous limit of $200 billion per company. So far, the government has handed the two companies a total of about $111 billion.

More of that cowboy free-market capitalism gone crazy I guess. And how about respect for the democratic process and the rule of law? Who needs that when we have hope!

By using Fannie and Freddie for such initiatives, the White House doesn’t have to go to Congress for funding. The Treasury and White House can simply issue instructions to Fannie and Freddie via their federal regulator, the Federal Housing Finance Agency, or FHFA.

One Response to “$111 Billion and Counting”

  1. Speedmaster says:

    Cuomo has blood on his hands, and he’s already begun his gubernatorial race. You’ll never find good editorials like these in the Rochester D&C.

    http://online.wsj.com/article/SB10001424052748703427704575051443279877452.html

    http://online.wsj.com/article/SB10001424052748704533204575047421387157564.html

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