The Dream Of A Permanent Conservatorship For Fannie and Freddie Is A Fools Game.
Once again Fannie and Freddie have been brought to the precipice of destruction and once again we are here to shed light on those who would love to stay in the shadows.Senator Corker is back again furiously trying to pass his “Jump Start GSE Reform” bill by attaching it to the massive Omnibus spending package. I want to make perfectly clear a few key points that the Democrats must understand before they make a final decision on this legislation.
There are many Democrats who are under the mistaken notion that they can eternally retain all of the benefits of the GSEs and retain all of their profits as well.They believe that the inability of Congress to address this ensures that the current nationalization of the GSEs can go on indefinitely.This strategy is marked with many pitfalls and will fail.You must remember that the foundation of this idea lies in the fact that our government, just as Fannie and Freddie were becoming profitable in 2012, made the decision to take all of the GSEs profits.Initially, our government lied and claimed it was just sheer coincidence but over the last several months it has been proven both through courtroom discovery and other avenues that our government knew that big profits were coming to the GSEs, and that’s what motivated the profit sweep.I have personally heard first-hand accounts of this from high-level GSE insiders, and I believe you will soon be hearing some of this chilling testimony very soon as well.Ultimately there is no way this will be allowed to stand and will result in the over-turning of the sweep and the conservatorship itself.
White ideological affordable housing “experts” and politicians have no clue of the horrors that Black America has faced, leading lambs to slaughter.
The other disturbing fact that I want to address is the fact that why is it that we have a group of white ideological housing experts determining the fate of millions of Black Americans? They have no firsthand experience of the horrors that have plagued Black America when it comes to access to Americas mortgage and credit markets.
Just today I read an op-ed where once again Jim Parrot and Mark Zandi paraded around their utopian dreams for housing finance.The one ingredient they always seem to leave out is exactly what Congress do they foresee passing these fantasies? Nothing even remotely resembling their Utopian ideals will be the final product of any new housing finance system that would come out of this Congress.
Not one Black leader has co-signed any of the delusions that have emanated from the ivory tower liberal think tanks, on the contrary, they all have demanded the reformed recap and release of Fannie and Freddie. President Obama defied their pleas when he unleashed his Treasury attack dogs on them and discounted their claims and had the audacity to question “who bought Maxine Waters?” implying that the only reason our Black leaders were calling for the release of the GSEs was because the hedge funds must have bought them off. Let me assure you that this has not gone unnoticed, and there will be a steep price for this gross disrespect.
The bottom line is that if Corkers bill passes it will ensure that the day will come when the Democrats are forced to negotiate a new housing finance system with the Republicans.Forget all of the background noise for a minute and honestly, ask yourself what you think the results will be if you had to sit down right now and negotiate with our modern day Republicans on this issue. Let me be very clear that the end result will be that the Democrats will lose at least 75% of the hard-fought gains they have made over the last several decades.Millions of minority and lower-income Americans will be condemned to a life of homelessness or locked out of the American dream. I challenge any of the privileged white experts who claim to know these issues so well to debate me on this. I suggest that before you indulge in your utopian fantasies take a ride to your nearest inner city poverty stricken ghetto and take a look around as I often do. Talk to the people there, you will find as I have that some of the nicest, honest hard working people you will ever meet live there.It is for them that I have returned to this blog because they deserve everything our country has to offer.
Major Implications For 2016 and beyond
If the Democrats ignore the wishes of their most loyal constituents, they will pay a severe price in the 2016 elections. Their hopes to reclaim the Senate is based largely on high turnout amongst Black America. We have compiled a paper documenting exactly what will befall the Democrats if they continue to disregard their most loyal constituents.We will be attaching the paper here soon:
I want to leave you with a message I received tonight from a very key liaison and leader as I struggled to write this post.
“Keep the faith brother! We will prevail sooner or later.They will fall under the weight of their lies.”
Please Keep the Faith
Edit 12/18 1:44am
I just received word that the jumpstart bill will be in the Omnibus bill. The best we have accomplished is time limits on the bill.
Portion of my conversation below from a short time ago:
Me: “No way they will push to get it removed? If they need the votes to pass the omnibus? Or it’s a done deal?”
Liason: “No it is done. Let’s just hope they limit time. And courts do their job. Administration is fighting us hard”
This is a profound disappointment but we thank everyone who worked on our behalf.