Fannie Mae-No Politics (FNMA)

[obiterdictum]

As you know then there is also some history of nationalization of private industries in the US during particular moments or periods of economic or political crisis. Fannie and Freddie are not the first. And they will not be the last.

What is problematic here is the total confusion and embattlement of government officials, lawmakers and the law (HERA 2008) in and over the ongoing process of temporary conservatorship of two private companies with public, federally chartered missions. These two multi-trillion dollar companies have been "surreptitiously" nationalized under the noses of all not paying close attention via a few sheets of paper signed by Timothy Geithner and Ed DeMarco and known as the "Third Amendment."

3rd Amendments
Fannie
http://www.treasury.gov/press-center/press-releases/Documents/Fannie.Mae.Amendement.pdf
Freddie
http://www.treasury.gov/press-center/press-releases/Documents/Freddie.Mac.Amendment.pdf

So what do we have here? Federally chartered, privately held shareholder companies with a public mission in a temporary conservatorship or a nationalized secondary mortgage market industry administered through nationalized Fannie and Freddie?

They cannot be both.

The answer is unclear at the moment since HERA 2008 and parts of the 2008 and 2009 PSPAs are still in force at the same time as the 2012 3rd PSPA amendment. It will take the currently filed lawsuits to cut through the legal Gordian Knot created by the enactment of the 3rd amendment to the PSPAs.

All PSPAs here:
http://www.fhfa.gov/Default.aspx?Page=364

The 113th Congress can be counted on to make things worse and they have done a brilliant job of that so far. Only one out of five made it out of committee and that bill advocates for a totally private mortgage and secondary mortgage market that will never be enacted. It is DOA.

See list of GSE Reform bills:
http://www.govtrack.us/congress/bills/browse#text=GSE

It was President Obama and his former US Treasury Secretary Timothy Geithner, along with the agreement of FHFA Acting Director Ed DeMarco, who approved and engineered an allegedly illegal change in the GSEs PSPAs that effectively turned Fannie and Freddie into hybrid nationalized entities wherein all profits are swept into the Treasury without due notification given to existing shareholders or just compensation through due process of the law under the 5th amendment's takings clause.

5th Amendment of the US Constitution: No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

The Congress, (House and Senate) has been sitting on its brains while this has happened. It is seriously doubted that most Representatives or Senators have any idea what is going on and if they do, they are pathetically irresponsible not to have acted on this immediately. Their inability to be proactive and constructive and ignorance of the laws made by a previous Congress have forced them to study up, but will that make any difference? Their actions demonstrate exactly where they do not stand and what they do not do. Examine the 100 Senators and 433 Representatives of Congress and what have the vast majority publicly done for or publicly said about GSE reform?

Most of the media journalist reporting on GSE reform are a laughing stock. With unbelieveable blindness or blinkered foresight or biased political views, they do not see the real story that is present before their very eyes. In the relish to see Fannie and Freddie end and to support every negative thought going, they ignore the Executive Branch's successful effort to secretly nationalize two of the largest privately held companies in the world and to abscond scot free with their profits for government coffers (not taxpayers) while ignoring procedural law, due process of the law, the 5th Amendment of the US Constitution, just compensation to private shareholders, and a report of the benefits to US taxpayers. By September's end, 146 billion dollars will have been transferred to the US Treasury from the GSEs. What are those billions doing for us, the US taxpayers? Is the money being used to support the national housing recovery? There is no report. None at all. And so what is the use of saying the taxpayer is getting benefits when it really means it is going to the Executive Branch of US government and used in ways no taxpayer knows?

Wake up media people! Do a service and end the copy cat yellow journalism. Report the story as it is. Ask relevant questions and remember this is 2013 and the Fannie and Freddie of 2008 no longer exist. Get up to date. You are the ones who are not supposed to be bamboozled....

And so it goes DickCheney. This is perhaps worse than a banana republic or communist nation's rolling over private industry and shearing off private ownership without just compensation. At least in those cases, they did it without compunction, double talk, and were done with it. A transparently done ripoffof private capital in the name of authority, power and ideology. What is the government method used nowadays in the US to obtain what is wanted from privately owned industries with national and global systemic connections, networks and operations?