Obama Forces GOP to Say No to Free Jr College and No to Eliminating Fannie and Freddie
What would happen if a national law said that everyone with a 2.5 GPA or higher gets free Jr College Ed? Well, no jr college prof's would even give C grades, and everyone would enroll for the free ride. JCs don't even give bad grades now because they know how hard it is for working people to pay for and go to school. The perverse incentives. Do you want a nurse or car mechanic who should have failed school but was given good grades in order to prop up a failing JC system? BO knows it never gets passed, but it looks great for him and his party to say, hey Dems wanted this great program that Repubs stymied. Just another game to grab votes.
Same with Fannie and Freddie. Forces GOP to admit they like Fannie and Freddie, Big Banks and TBTF. In the mean time he gets to pilfer away all FnF capital to pretend like he is cutting the deficit while propping up housing and affordable housing goals. Now that all Big Bank fines have been paid, Big Banks and Repubs like Fannie and Freddie again. If big banks didn't like Fannie and Freddie, they wouldn't be selling mortgages to the companies. It is a perfect model for them. They earn an immediate underwriting fee with no credit risk and retain customer deposits, ccards, car loans, etc while they offload 30 year fixed rate mortgages that they don't want on their books and regulators won't let them keep on the books. They actually can't profitably do PLS anymore because of Dodd Frank risk retention rules and the capital required!
BO is playing games. Just like with immigration. Making promises to Dreamers and trumpeting how HE is carrying on the American Dream of our Forefathers while Republicans seek to maintain caste ceilings.
This president uses the pronoun "I" more than anyone in the history of the world. Everything is I did this, I did that, I dropped oil prices, I passed free healthcare, what a joke.
Expect capital retention and full privatization in some form. Repubs will initiate a proposal, and Dems will layer in affordable housing goals. Taxpayers will make $400 billion., and everyone wins.
