Over the past decade, Fannie Mae and Freddie Mac transformed themselves into some of the worst-run companies in recent history. But contrary to current talking points, the firms' failings had almost nothing to do with their programs for low-income borrowers. As policymakers debate what should be done with the mortgage giants, a battle is now beginning in which the very availability of affordable housing for the middle class may be at stake.
by Zach Carter, Media Consortium MediaWire Blogger
President Barack Obama unveiled his administration's plan to fight foreclosures on Wednesday. Unfortunately, the most important element of the program will require Congressional action—and the banking and business lobbies are already on the attack. The Homeowner Affordability and Stability Plan has three chief components:
by Zach Carter, Media Consortium MediaWire Blogger
"I'm not talking about a budget deficit. I'm not talking about a trade deficit. I'm not talking about a deficit of good ideas or new plans. I'm talking about a moral deficit . . . . We have a deficit when CEOs are making more in ten minutes than some workers make in ten months; when families lose their homes so that lenders make a profit; when mothers can't afford a doctor when their children get sick."
Loan Titans Paid McCain Adviser Nearly $2 Million
By DAVID D. KIRKPATRICK and CHARLES DUHIGG
Senator John McCain's campaign manager was paid more than $30,000 a month for five years as president of an advocacy group set up by the mortgage giants Fannie Mae and Freddie Mac to defend them against stricter regulations, current and former officials say.
But that's just the tip of the iceberg on both sides. McCain's mad as hell that he's no longer completely free to disavow his entire past at a moment's notice, and it's starting to get to him. While the bailout battle itself is tremendously important--a potential Shock Doctrine-style turning point, in which the shocked start shocking back--it's impossible to extricate this from simultaneous presidential race posturing, and here John McCain is perilously close to losing his footing altogether, and plunging headlong into the Bushian abyss. The Abyss!
Sarah Palin apparently has a limited understanding of the troubled mortgage finance industry, as she told voters in Colorado Springs (9/6) that lending giants Fannie Mae and Freddie Mac had "gotten too big and too expensive to the taxpayers." She promised that "The McCain-Palin administration will make them smaller and smarter and more effective for homeowners who need help." Perhaps Gov. Palin may be forgiven for her shallow knowledge of the secondary mortgage market. Andrew Leonard of Salon.com noted (9/8) that Fannie and Freddie have been private entities and haven't cost the taxpayer a dime-so far. Ironically, the lack of regulation of mortgage bankers brought on the abuses that forced the government takeover. But taxpayers likely will end up picking up a substantial tab.
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