Omigod!!! Gee, why hasn’t anyone thought of that before?!? I mean other than all those times the Bush administration wanted to reform these money toilets? All I can say is, “DUH!!!”
Rep. Barney Frank (D-MA) wants a single agency to replace Fannie Mae and Freddie Mac to handle the flushing of the financial system further into the crapper. Of course, this isn’t reform. What Frank wants is to replace two entities that are too big to fail with an even bigger one that is much too big to fail.
I’ve got two words for Frank’s suggestion. Epic. Fail.
Steve Gilbert is curious about this conundrum:
By the way, this is the same gentleman who not that long ago famously assured us that there was nothing wrong with either Fannie Mae or Freddie Mac.
Which Frank did in 2008.
Frank has expressed “concern” about some other happenings at the two government-controlled companies. Despite the fact that Fannie and Freddie are set to lose $400 billion and has been given an unlimited supply of cash from Treasury over the next three years in order to keep it afloat, the Obama administration is handing out $2 million of our tax dollars in BONUSES to the their CEOs, along with $3.1 million in deferred payments. Frank said “nothing can be done now” about cancelling those bonuses. Translation: Frank is lying and is too much of a hypocrite and a coward to do anything about these bonuses. Throughout the year, Frank has been whining like a schoolgirl about bonuses to bank executives, even those who work in banks that didn’t receive TARP money. But he’s said absolutely nothing about Fannie/Freddie bonuses even as those two bleed money profusely.
Now Frank wants a single agency to do the financial hocus-pocus that is currently being done by Fannie and Freddie. I have a much better idea.
- How about using any remaining TARP money to buy the assets still held by Fannie and Freddie (after all, TARP was originally supposed to be used to buy toxic assets and not be a slush fund to bail out banks run by Democratic supporters), taking them off the books.
- Second, write off the toxic assets and sell the good ones off to private sector financial firms. Forget about about getting any money back from the toxic assets; the government is already losing gobs of money keeping Fannie and Freddie around, along with bail out money given to AIG and the TARP money handed to GM and Chrysler.
- Then, bury the corpse of the Fannie/Freddie beast forever, firing every single one of their employees; the new agency that is attached to HUD and supposed to provide oversight of them could be dumped as well. That will do wonders for the economy that is still buried by the toxic assets.
- If Teh One and Frank still want to help out homeowners currently in trouble (which would be stupid, but we are talking about the Obama administration and Congressional Democrats), then a new agency can be set up to handle it. But instead of having this agency come out of HUD, attach it to the Treasury Department, just as it is with the banks. That was one of the major problems with Fannie and Freddie; even though the two were, in essence, financial firms, the oversight was done by HUD, which has a completely different agenda from the Treasury Department.
Anyway, that’s my two cents.
That would be far better than anything the lying, scheming, and hypocritical Barney Frank would ever come up with.