We proved truth is stranger than fiction in what was probably one of the more wild and productive weeks we have seen by our blog. Besides our NYSE listing requirement story, there was a host of other key developments.
We have seen some results in our Light of Truth Campaign in respect to the conservative-dominated financial media. Both Bloomberg and Forbes have restrained from taking every opportunity to bash the private shareholders of Fannie and Freddie. They have run numerous articles recently in which they simply report the pertinent news about Fannie and Freddie.I must say I found it very amusing to see Rupert Murdoch’s Fox business devote so much attention to our NYSE listing story. Now they did not credit our blog for breaking the news but they did one better. Charlie Gasparino was on Fox business TV and towards the end of the video segment Charlie is asked what it would mean for the average American if Fannie and Freddie were eliminated.Charlie reports that he has spoken to a number of congressman including Republicans and Democrats, and they told him “the mortgage market would take a huge beating.” He went on to explain that people don’t realize how big of a foundation Fannie and Freddie play in our housing market. Without Fannie and Freddie the housing market will surely be in peril. It was refreshing to see a conservative media outlet share the truth. Let us hope this small step is the beginning of a strategic shift.
Now on the other end of the spectrum where we would expect this type of support we found just the opposite. In an opinion piece for his local paper Congressman John Carney from Delaware seems to have become completely detached from reality. It appears the freshman rep has chosen to continue to push his misguided bill completely ignoring the facts. The failure of Fannie and Freddies shared risk MBS to gain any traction condemns not only Carneys but all 3 GSE reform bills to the scrap heap. In the Op-ed Rep. Carney says- “In the lead-up to the mortgage crisis in September of 2008, Fannie Mae and Freddie Mac adopted too many of the risky practices of the subprime mortgage industry. As a result, they got themselves into extreme financial difficulty.” I could devote an entire blog correcting this one false statement. Rep. Carney have you not seen the news regarding the billions of dollars of toxic MBS that the big banks dumped onto Fannie and Freddie? I suggest you take a few minutes and review some of the lawsuits rather than repeating tired old irrelevant lies. John as you continue to push your bill you are putting some of the most vulnerable Americans at risk of being permanently shut out of the U.S. housing market. This would not only be disastrous for them but to our economy as a whole.
In other news, the fact that Fannie Mae is looking selling their headquarters and consolidating has been in the works for years. It is felt that after all the false demonizing that was done to them a fresh start would be a good idea. The Mansion like main headquarters sends a message of vast wealth and privilege, just the reputation they are working hard to change. The timing of the news release though was not a coincidence.
By directing Fannie and Freddie to offer more assistance to lower income borrowers, FHFA director Mel Watt has raised the stakes in the GSE reform debate. Watt has made a career out of championing the rights of the poor and is proving to be an important member in the Coup.He proved yet again that he will not abandon his roots. In order for democrats to make any of the current GSE reform bills palatable to republicans they will essentially have to cast their most vulnerable constituents to the same folks who truly caused the last crisis.
On the legal side of things, we have received some excellent information in the comments section once again. This time in regards to the treasury calling the shots with the FHFA in terms of the conservatorship.For our newer readers, the government has made the outrageous claim that the FHFA was acting independently on behalf of Fannie and Freddie.We all know that the FHFA has acted at the will of the treasury that is why you often hear me describe the Third Amendment Sweep as ” The government made a deal with the government to sweep all of the profits to the government.” I will be posting on all of this soon as in addition to what was revealed in the comments we have uncovered further proof as well.
I want to let our readers know that we have added Mark Cubans Cyber Dust to our arsenal. This will offer readers yet another avenue to send us anonymous tips. Our username there is timhoward717. We are also looking into forming an organization that will enable us to further spread the truth. I will keep you all updated on this. Keep the Faith!