On July 21, when Obama signed the Dodd-Frank financial regulation bill, he promised; "There will be no more tax-payer funded bailouts period." How long will will this Obama promise last? Well. The N.Y. Times reported today that "The Obama Administration" on Wednesday pumped 3 billion into programs intended to stop the unemployed from losing their homes, "including a program announced by the Department of Housing and Urban Development, "will draw on $1 billion authorized by the new financial overhaul law." Just one month ago Obama promised there would be no more bailouts!
Faced with the utter failure of it's Tarp funded mortgage bailout, the Obama administration is now turning to the Lefts old stand-in for housing market interference. The government sponsored Fannie and Freddie. Fannie Mae is now working with the National Council of State Housing Agencies to let people buy houses with little or no down payment, just like the GSE's did at the height of the housing bubble. Last week Freddie Mac was promoting no-down payment loans.
All this despite the fact that last week Fannie Mae announced a $1.2 billion loss in the second quarter and this week Freddie Mac announced a 4,71 billion loss. Both companies were also forced to ask for more Obama bailout cash, including $1.5 Billion for Fannie and $1.8 billion for Freddie. All your tax dollars. In total we have spent 150 billion bailing them out and they are starting out again.
By allowing the above, the Obama administration is only prolonging economic hardship.
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