Deja Vu All Over Again One More Time
Posted by leowalker on September 5, 2009
The Government Sponsored Enterprises affectionately known as Fannie Mae and Freddie Mac are once again doing what they do best: going broke. People in the know are noticing, but probably the news will be more or less hidden from the general public. Probably no more than a quick, no questions asked press release late on a Friday afternoon. You can get summaries from different perspectives here.
So what might this mean for prospective home buyers? Hard to tell. If there was any common sense in Washington they’d just let the critters go bankrupt. That won’t happen, most likely, it would shut down the trough. Shutting down the trough would be ok if it were only American home buyers who were bellying up. But Fannie and Freddie have been good to our elected representatives both directly in the form of campaign contributions and as a source of payoffs for favors rendered. Probably Fannie and Freddie will be bailed out again, not for the sake of the public but for the sake of highly paid public grifters and their hangers on.
Get ready, fellow taxpayers! Your country needs you to save this invaluable gravy train. For the children, or something.
