Freddie and Fannie: government failure

On Thursday, Tiny Tim Geithner and the Obama White House gave their friends at Freddie Mac and Fannie Mae unfettered access to your tax dollars.  In effect, the Democrat appointees at these government corporations that caused the economic meltdown have the password to your online banking account.

Geithner’s justification, according to Wall Street Journal:

Unlimited access to bailout funds through 2012 was "necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.

Isn’t that just dandy?

Treasury officials, of course, have refused to discuss the matter—part of Obama’s new transparency rules.  This open-ended, unlimited bailout of Obama’s biggest contributors is an admission that America’s financial system is not on the road recovery but on the way to a second crash.  The FDIC is bankrupt, meaning your checking and savings accounts are less secure than cash.  As a taxpayer, you are on the hook for whatever Freddie and Fannie (and Barney Frank) want to spend. You are the victim of the largest identity theft in world history. 

For those who wonder why so many silent Americans have rushed into the streets to form the Tea Party movement, this is all they need to know. The US government has lost its moral authority to govern.  For example, the announcement of unlimited tax dollars for Freddie and Fannie coincided with pay raises for the executives at the failed agencies:

The companies on Thursday disclosed new packages that will pay Fannie Chief Executive Officer Michael Williams and Freddie CEO Charles Haldeman Jr. as much as $6 million a year, including bonuses. The packages were approved by the Treasury and the Federal Housing Finance Agency, or FHFA, which regulates the companies.

As many have observed, Obama does not reward competence, only obsequiousness.  Williams and Haldeman must be very obsequious.

Next Move

Some folks are planning a National General Strike for January 20.  At first I thought this was too much. Now I’m leaning toward joining. What would happen if 500 people stood in the entrance to Lambert from 7:00 to Noon on January 20? What if the same thing happened at 20 major airports?  And what if millions of children stayed home from schools and millions of Americans called in sick?  Maybe we need to get the attentions of America’s Fortune 500 CEOs.

I think it’s time to ratchet up our activism.  What are you doing on January 20th?