« France offers glimpse of higher ed under Obama |
Blog Home Page
| 'What Congress Knew' »
May 9, 2009
$19 billion more down the Fannie Mae black hole
And that's in addition to the $400 billion we've already poured into the bottomless pit of Fannie Mae and Freddie Mac.
Joe Weisenthal at Clusterstock believes this story is not getting the attention it merits because it doesn't fit the anti-capitalist narrative the media has created and that too many Democrats with ties to the mortgage giants are in powerful positions:
The problem is that the Fannie and Freddie disasters don't fit into any conventional media narrative. At AIG you had Joe Cassano, lurking in the shadows, turning AIGFP into his own personal casino, while taking home gargantuan pay.
Fannie Mae? They help nice families get into homes. Their motto is something about helping the people who help house America. Who could be against that? Plus, the Fannie and Freddy story doesn't help explain the idea that laissez-faire deregulation is what allowed Wall Street to go crazy. Fannie and Freddy had their own freakin' regulator, OFHEO. Two companies with one regulator to look into both of them.
And then you have all the Democrats on the inside (Rahm Emanuel, for example) on the outside (Barney Frank), who have ties to the company's worst years.
If AIG (AIG) ever has to ask for one more dollar to pay counterparties like Goldman Sachs (cue the ominous music!), there'll be a fresh round of media outrage. Fannie and Freddie continue to blow through cash though, and it goes without a peep, depriving the public insight into one of the more important aspects of the housing bubble and the crisis.
Congress has created a commission to look into the mortgage collapse. I wonder how closely they'll look at the doings of the two mortgage giants?