Fannie Mae And Freddie Mac

This post is not to try and figure out if Fannie Mae or Freddie Mac participated in wrong-doings, I'll leave that to the legal eagles. I will discuss under who's watch did the debacle of Fannie Mae and Freddie Mac happen.

Most economic experts believe if Fannie Mae and Freddie Mac could have remained solvent we wouldn't need a government bail out. But since they didn't the $700 billion bail out was born. Here's what really concern me about the bail out debacle, we see every media outlet, newspapers and TV inviting Democrats and Republicans to explain what's going on with the financial institutions. Democrats blaming Republicans and vice versa, even on cspan Democrats and Republicans are blaming the other party. I sit in disgust watching cspan with people calling in with comments while so uninformed. Common sense should lead anybody to the conclusion if you're hearing two different episodes to one story; somebody has got to be lying. What I've noticed is that cspan have a vast audience of sheeples (people who follow and believe anything they hear, without the benefit of intellect). When people just accept anything they hear and read without doing any investigation to find out if it's true or not, they're actually enhancing their ignorance. Example: We've all heard people embellishing a story to make it more than what the story really was; so what you're really doing when you just accept something without research, you're actually embellishing your ignorance. It's really ironic that the only TV show Americans can tune in to get the truth about anything these days is the Daily Show with Jon Stewart.

OK, Fannie Mae and Freddie Mac, sorry I had to say all of that to say this. I actually believe Fannie Mae and Freddie Mac is a good thing, hold on a minute!!! let me explain. I view it as a good thing when the people who are at the bottom of the totem pole are given a chance to live the American dream. Everything was fine when Freddie and Fannie was making sure the houses these people were purchasing, the mortgage was in range of their earnings. The problem started when the bundling of mortgages flim flam game was introduced. Here's one example, Comcast Cable Co. charge a certain amount for cable TV, a certain amount for Internet access, and a certain amount for phone service. Let's just say cable TV is $75 a month, Internet access is $50 a month, and phone service is $40 a month. At the time the only service you have from Comcast is cable TV, a Comcast representative contact you and tell you if you bundle all three products, you only pay $100 a month for a year. After a year do to the cost of operation of the cable company, every product has increased in price, now your sweet bundle deal has increased threefold; and the only people who can get the bundle deal are new customers. Deregulation allowed the Wall Street guys to bundle mortgages and sell them at a cut rate price for a few years until they ballooned, and all of a sudden the American dream you could afford a few years ago are no longer affordable.

I'll say just one more thing about the Republicans and Democrats blaming each other about America's financial situation, and attach some fact content to it. When Republicans come on nation wide TV and in the print media, and proclaim the Fannie and Freddie debacle started during the Clinton administration; that's an outright lie. First of all there was no Fannie and Freddie debacle during the Clinton administration. Secondly, the Republicans controlled the House of Representatives and the Senate from 1995 to 2006; that's a fact. So if one is to believe the Republicans, what they're actually admitting is that they saw the problem, had the power to do something about the problem, and chose to do nothing; only a sheeple would go for that.

I would be remiss if I didn't say something about the true victims of the financial situation, the middle and lower class workers. Everybody deserves blame in this bundling game, the middle and lower class workers deserve some blame for going for something that just was too good to be true; that's how flim flam artists reel in their victims, ignorance is no excuse. Example: When you are stopped by a traffic cop doing 35 mph in a 25 mph zone, and you say to the cop, "officer I didn't know this was a 25 mph zone." The first thing the cop will tell you is this, "ignorance is no excuse" give you your ticket and move on to the next victim.