Fannie Mae-No Politics (FNMA)

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Lesson learned: Perception is not always reality. ALWAYS best to stay clear of trouble by sticking with reality. Sooner or later false realities WILL catch up with you. Do not expect Gov will EVER learn this basic principle of life as they are blinded by power & greed.

Two major blunders by Congress in the 1990's that caused them to shift the blame for the 2008 Financial Crisis to Fannie Mae & Freddie Mac in one MASSIVE Gov cover-up scandal that spanned across 3 decades, 4 administrations and both REP & DEM parties.

1. Affordable Housing Goals, the attempt to increase home ownership through relaxed lending standards in a declining job market.



2. Gramm, Leach, Bliley Act of 1999 where Congress voted to repeal part of the Glass–Steagall Act of 1933, removing barriers in the market among banking companies, securities companies and insurance companies that prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company.

Congress got sucked/bribed into giving TBTF banks more freedom and power in how they conduct their business. In addition, banks were given the freedom to write their own legislation.

Note the timing of the closed door session of Congress, 13 March 2008, ONLY THE FOURTH TIME IN 176 YEARS THAT CONGRESS CLOSED ITS DOORS TO THE PUBLIC. Just 6 months before the financial crisis hit. What were they discussing?

CONFLICT OF INTEREST, FRAUD, BRIBERY, LYING TO THE PUBLIC, THEFT OF PRIVATE PROPERTY, MURDER, NATIONAL SECURITY??? Nahhhhhhhhhh. Nothing to see here, move along.

What was I saying about perception yesterday?

Some analysts believe Congress would have trouble with the political fall-out from having to make another “taxpayer bailout” to the two agencies whom many Americans believe caused the financial crisis that brought the economy to its knees.