The liberal’s idiot savant, Barney Frank, opened up his lisping mouth and informed America that Democrats have used Freddie Mac and Fannie Mae to buy votes.
The Hill reports:
Mortgage giants Fannie Mae and Freddie Mac are now basically a “public policy instrument” of the government, Rep. Barney Frank (D-Mass.) suggested Tuesday.
Frank, the chairman of the House Financial Services Committee, asserted that the companies, which were taken over by the U.S. in September 2008, have become an extension of the government’s policy-making tools.
“Remember now that Fannie and Freddie have been converted,” Frank said during an appearance on CNBC. “Part of the losses of Fannie and Freddie are that since the housing collapse, Fannie Mae and Freddie Mac have become a kind of public utility.”
This is what happens when you let politicians use federal programs to force banks to give subprime loans to people who couldn’t afford a house. Loans were given to people who had no jobs, no credit and didn’t even have the means to come up with a down payment. Sounds like a liberal’s business plan to me and this is what caused our economic crisis.
Frank made this comment after a report showed that the American taxpayers are going to lose about $400 BILLION thanks to Freddie and Fannie. Barney Frank, and the Democrats, kept shouting that Freddie and Fannie were not in a crisis, despite the calls asking for tighter regulations.
Basically what Barney Frank is admitting is that Democrats have gambled away $400 billion taxpayer dollars so they can by votes. The Democrats have used Freddie Mac and Fannie Mae for purposes that they were never intended for.
For example, Fannie Mae use to guarantee only top-rated standard mortgages, which kept it solvent through previous real estate recession. However Barnie Frank, and other corrupt members of Congress, insisted that they start guaranteeing sub-prime mortgages in order to buy votes for Democrats. Now the Democrats have done it again with this scheme to use Fannie and Freddie to bailout homeowners to buy more votes.
Fannie and Freddie have become so corrupted by Congress that perhaps they need to be shut down and the corrupt politicians who claimed these two GSEs faced no crisis should be thrown in jail for fraud. Just for those of you who didn’t hear, the Treasury Department removed the $400 billion dollar cap on Freddie and Fannie. It’s another Ponzi-scheme being conducted by our elected officials. Twank you Barney, you Elmer Fudd sounding gas-bag.