Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) Motive via TimHoward717.com
Every great crime has a motive, here we will examine what has motivated our government to illegally seize control of Fannie Mae and Freddie Mac (GSE’s) and sweep all of their profits into the U.S. treasury. As I said in a prior post, the two-root causes are no different than what we find in most massive securities fraud cases, Greed and grossly misguided principles. Isn’t it ironic that the one big issue our divided leaders have found agreement on involves the blatant theft of the private shareholders profits by the government. As we examine the motives of the democrats and republicans, we will see how this issue has united them like no other issue in the last several years.
If there is one question I am asked the most it is why on earth would the government do this? People around the world are especially curious as they have long viewed America as a beacon of freedom. Soviet style profit grabs were common in Hugo Chavez’s Venezuela but not in America. As more and more of this story comes to light it literally begins to read like an Orwellian nightmare come to life. So let us begin, lets start with the republicans because their motives are by far the simplest to explain.
In their maniacal zeal to finally rid the country of Fannie Mae and Freddie Mac (the GSEs ) the republicans have completely trampled the ideals which once made them great. They have long felt that Fannie and Freddie represented a quasi-socialist form of housing finance. There disdain for Fannie Mae and Freddie Mac is evidenced by the bill that the republican lead house has put forth which would not only eliminate them, but almost completely remove the government from housing finance altogether. Their absurd plan to remove the government from the mortgage market would have catastrophic effects on the entire housing market and the U.S. economy as a whole. lately their bill is not even mentioned in any serious GSE reform discussions so once again they have simply removed themselves from a very critical debate. Somehow they believe this is called governing?
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Another motive was made clear by the likes of Senator Corker and all of the other republicans bought and paid for by the banking sector, they hope to privatize the business that Fannie and Freddie conducts and enrich their banking masters. They ignore the basic facts that if the government removes itself completely from home finance and private banks fill the void there will be dire ramifications. Renowned banking expert Dick Bove explains this in detail in a recent paper and that we will be analyzing soon.
Fannie Mae and Freddie Mac – GOP motives
Finally, we come to the financial motive, when it became apparent that Fannie and Freddie were on the verge of delivering massive profits they knew that the profits would lead to their release per the terms of the conservatorship. This was when republicans stooped lower than they ever have before. This is the moment they turned a blind eye to the rule of law and shareholder rights and became willing accomplices in this great scheme.Some are directly involved in this government heist which is even more revolting.I never thought I would see the day that republicans would support a soviet style profit grab regardless of the motives. Thank God Ronald Reagan did not live to see this day, but I am sure somewhere he is looking down on all of this with a tear in eye. His once great party has reduced itself to a mere shell of what he stood for and accomplished.
Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) Democrats motives
Now on to the democrats, this is perhaps one of the most complex and disheartening posts to write. It is a tale of epic betrayal and greed. To understand Obamas motives in this let me present a timeline.In August of 2012 when it became apparent that the GSEs were soon to be generating huge profits once again Obama instructed the treasury department to enact the 3rd amendment sweep. This was where the government (treasury department) negotiated with the government (FHFA) to seize all of Fannie Mae and Freddie Mac profits for themselves.If allowed to stand, this will be looked back on as one of the darkest moments in U.S. history.
Obama and the democrats backed this as a way to cushion the coming budget cuts. In March of 2013, the sequester went into effect. In August of 2013 Obama broke a 5 year silence on Fannie Mae and Freddie Mac reform to come out in favor of the Johnson Crapo bill. A bill which would wind down Fannie Mae and Freddie Mac. He chose to continue to use our billions in profits to cushion the blow of the sequester cuts. Essentially he decided that our profits would be much better spent the way the government sees fit. He had to back the bill in order to extend the profit grab. He justifies this the same way many in DC on both sides of the aisle have, they feel that because the taxpayers put up billions to save us they are entitled to all of our profits. What they have forgotten is that their opinion means nothing in this case, the rule of law determines where the profits go.
Of course Like their republican counterparts there are those democrats who are beholden to the banking industry as well. They hope that any reform will fill the pockets of their banking masters.
I must say I am most ashamed of the democrats. Fannie Mae and Freddie Mac for decades fulfilled so many promises to their constituents and were always there for them but when Fannie Mae and Freddie Mac stumbled and fell in 2008 not one democrat was there to return the favor. Rather they kicked them while they were down and continue to beat them into submission. They make a mockery of them with lie after lie. Shame on you Barack Obama and shame on the rest of the democrats in DC, who have participated in this perverse betrayal.
I want to point out that not every politician in DC has blindly gone along with this heist, a few have bravely spoken out on our behalf and for this we are grateful. We are currently reaching out and requesting statements of support from any DC politician willing to vocalize their support for our rights. There will be a future post dedicated to any brave DC patriots willing to publicly make a statement on our behalf and stand up for the rule of law. Unfortunately though most of those opposed sit in silent complicity and watch as the government tramples the rights of private shareholders. They are guilty as well.
One thing I want to make perfectly clear to everyone involved in this Fannie Mae and Freddie Mac heist. You no longer have the luxury of lurking in the shadows, we will be here every step of the way documenting your every move. Shining the light of truth on your seemingly endless stream of lies. Keep the Faith!