Bush Perpetuates Democrat Scam

Fannie Mae and Freddie Mac were created to assist low and middle income people get mortgages so they could enjoy home ownership. A noble idea to be sure but along the way things got all screwed up. Why? It's run by the government and anyone with an iota of brain matter knows that the government can't run a damn thing where turning a profit is the goal.

To ensure that this government monstrosity was run like everything else in DC, they made it tax exempt and oversight was essentially nil until the early 2000's. As is so often the case with many federal entities, it also became an attractive job locale for former presidential advisers looking to cash in after serving in government. Being DC--a highly Democrat populated city--those who cashed in through shady accounting practices were Democrats including former Clinton Justice Dept official Jamie Gorelick whom John Ashcroft verbally obliterated in front of the 9/11 Commission. Typical DC, contribute to the cause of the death of 3,000 Americans and cash in for $700K, what a sewer that city is.

Anyway, President Bush in his infinite wisdom is going to bailout Fannie Mae and Freddie Mac:

Trying to calm financial markets at home and abroad, the Bush administration on Sunday evening asked Congress to give the Treasury Department new authority to extend credit and to purchase securities from the two mortgage giants Fannie Mae and Freddie Mac. Treasury Secretary Henry Paulson described the proposal as a “temporary” step and a “liquidity backstop.”

But portions of the request do break new ground, and the timing of the announcement at 6 p.m. appeared clearly aimed toward reassuring international markets before they opened in Asia and risked spreading further turmoil to Europe and Wall Street.

How effective the administration strategy will be was still unclear as most Asian markets fell Monday after opening with early gains. The Associated Press reported only major indices in China and the Philippines held up against the negative swing. European markets, meanwhile, rose in early trade.

Paulson acted after weekend consultations with leading members of Congress, and House Financial Services Committee Chairman Barney Frank (D-Mass.) told Politico that he is prepared to add the Treasury request to a pending housing bill that passed the Senate on Friday night.

The President could have made wholesale changes to the way these two organizations are run and should have played hardball with Rep. Frank. Privatization would be a great concept if the timing wasn't so whacked with Countrywide and other mortgage giants in tatters.

More link-filled info at the Heritage Foundation blog.