Monday, July 14, 2008

2004 FANNIE MAE SCANDAL: HUH?


This Fannie Mae/Freddy Mac stuff is interesting. Here's the important business blurb, from the NY Post, Jul. 9, 2008:




Freddie Mac and Fannie Mae have as much as $3.7 trillion in off- bal ance sheet securities that may have to be put back on their books under a proposed accounting change. Fannie Mae has about $2.3 trillion in mortgage- backed securities off- balance sheet while Freddie Mac has $1.4 trillion, according to Bloomberg and comments by the company's regulator.




Now, both of these corporations have been in trouble for some time. Here's a post from Wed. Dec. 29, 2004, from LEAVWORLD: GRAFFITI POLITTI!


FANNIE MAE SCANDAL: HUH?


Most people haven't paid much attention to the financial scandal at "FANNIE MAE", a semi public home mortgage agency. There is quite alot there. It's comparable to Enron, but former chairman Frank Raines is a democrat, so it gets soft-pedaled by the liberal media. This is the story that won't die; it has continued to resurface each time it gets to the next predictable level. Thanks to a Clinton era law, Raines had to personally certify the false earnings statements that are now being restated to the tune of $9 Billion. That's alot of scratch to falsely vouch for. Now after five years screwing up with taxpayer and private money, he is set to receive $1.3 mil a year for life. Oh, and free health and dental care(for life), just in case he can't afford it. The good news is that if you haven't seen this in the media yet, you still might. I'm sure that you will see something about this when the guy gets indicted for his actions, or convicted. People say "it doesn't really affect me, why should I care"? Because these guys are defrauding you and me, the very taxpayers they are supposed to be helping. This is typical of government programs, from the rot in education to the "ponzi scheme" called social security. More on that in later posts.




I've followed the mismanagement, but failed to continue posting about it. My bad. Now, it's like BOOM! This could be a serious contributing factor to our economic woes. All I can say is I saw it coming, at least in regards to Fannie Mae, four years ago. Sometimes, the problems are sitting in plain sight, all along. I should follow up on even the furthest "out there" ideas I post about, because I don't know which ones will be important years later.

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