5.06.2008

Fannie Mae

Today Fannie-tastic reported that they lost $2.19 billion dollars because they bought the fraudulent loans that folks at Countrywide created which are worth very little. They also stated that 2009 is going to be worse. So what does the government do?

“…the Office of Federal Housing Enterprise Oversight said it will lower requirements for surplus capital to 15 percent from 20 percent.”

And the experts chime in - ''With a weak housing market, for God's sake, we need Fannie Mae and Freddie Mac to work,'' said Andrew Parmentier, a managing director at Friedman Billings Ramsey & Co. in Arlington, Virginia.

What our socialist friend seems to be implying is that we created a situation that has caused our economy to be at risk of something bad and the only way to prevent it from really becoming badder is…. to do the same thing that got us to where we are today. The cliché of giving an alcoholic more alcohol to cure his alcoholism certainly applies.

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