Monday, August 17, 2015

The Sneaky Path We Took To A Socialist Mortgage Market

The Sneaky Path We Took To A Socialist Mortgage Market

http://www.forbes.com/sites/jeffreydorfman/2015/08/17/the-sneaky-path-we-took-to-a-socialist-mortgage-market/

The federal government appears to have done two fraudulent things on the way to our current situation. First, they used false pretenses to take over Fannie and Freddie. Second, they pretended they were only temporarily providing financial stability. While the government took an ownership stake in return for its “bailout” (a trick it may have learned from Warren Buffett) , they allowed private shareholders to remain and have even sold some of the government’s shares on multiple occasions. However, unlike a truly private company, all profits of Fannie and Freddie are still being seized by the government for reasons which are unclear and possibly illegal.
Given that the government did not simply declare Fannie and Freddie defunct, but allowed private shareholders some hope (and even sold them shares), it seems the government created an expectation of future return to those shareholders. Yet, several years past the date when the government was paid back, it continues to deposit all profits into the Treasury, leaving investors high and dry. At least the way our government does it, socialism pays pretty well.

4 Guys Golfing

From Tim Howard 717 blog
Nobody has observed this important event. @timhoward717, this would seem to be a very important meeting. If GSE’s are discussed, this would be pivotal and immensely important. And if not, then…
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Clinton and Obama were joined on the course by Vernon Jordan (red shirt) and Ron Kirk (blue hat)

4 golfers, Obama, Bill Clinton, Ron Kirk, Vernon jordan
Bill clinton = Fannie Mae Fan
Ron kirk = Fannie Mae Fan, Perry Capital Senior Lawyer
Vernon Jordan = Fannie Mae Fan, Power broker
Perry Capital’s attorneys at Gibson, Dunn & Crutcher did not immediately respond to requests for comment.
Ron Kirk is Senior Of Counsel in Gibson, Dunn & Crutcher’s Dallas and Washington, D.C. offices
the most powerful man in America is not at the top of anything but instead the most linked, the stickiest. That person is Vernon Jordan, deal maker extraordinaire and Washington superlawyer.
Could all be coincidence, but a lot of deals are done on the golf course.
Time to see if Obama’s tune on Fannie starts changing? That would be the tell.