Now we know why the US Senate has refused to confirm Dr. Ben Carson @ HUD. Obama diverted money from low-income housing to keep Obamacare alive. This could cause another mortgage meltdown….mortgage backed securities are not backed by anything or really short. This will cause a sudden stand still/dramatic slowing down in the sale of MBS’ that are needed to recirculate money…. leaving the GSE’s with virtually zero cash on hand means nothing short of disaster if they take even the smallest downturn. A situation like that leads to another bailout and costs taxpayers even more!
The Obama administration instead turned to the nation’s two government-sponsored mortgage giants – the Federal National Mortgage Association, commonly known as “Fannie Mae,” and the Federal Home Loan Mortgage Corporation, commonly known as “Freddie Mac” – to invent a new diversion of funds in a desperate attempt to keep Obamacare from collapsing.
A key date is May 12, 2016. That was the day when U.S. District Judge Rosemary Collyer, in the case U.S. House of Representatives v. Burwell, (130 F. Supp. 3d 53, U.S. District Court for the District of Columbia), ruled against Health and Human Services Secretary Sylvia Matthews Burwell.
TLDR: Obamacare’s subsidies to poor people who couldn’t afford healthcare were blocked by Congress because they refused to appropriate the funds for it.
A federal judge ruled that it was unconstitutional for the federal government to pay for poor people’s health care directly. Meaning, it was either they drop Obamacare entirely or force rich people to pay an even higher monthly premium to cover the cost of the poor.
Instead of doing any of those, Obama dodged responsibility by changing the terms of the Housing and Economic Recovery Act of 2008 (HERA) to be able to discontinue paying dividends to shareholders of Fannie/Freddie and seize all retained profits (which were supposed to held for “future bailouts”) to be able to fund Obamacare.
Let me describe how bad it could be.
Quote:Roughly, around 2006 when the signs were there, the small bank I worked at were considering getting into the subprime market.
The loan officer was super into it. The CFO on the other hand, was not. I was only in this meeting because I was a techie who would have to input this crap into the mainframe.
The CFO basically said “If we do this, buckle up kiddos, and put your heads between your knees, because it’s going to crash.”
The loan officer prevailed and I just did a really slow job of doing things. Really slow. Very very slowly.
Because the CFO, who was over twice my age, and smarter then I will ever be laid it down.
And then the crash occurred. And the root problem was Fannie May and Freddie Mac were insolvent.
And that’s when I learned a valuable lesson. LISTEN TO THE PERSON WHO IS ARGUING AGAINST SHORT TERM GAINS!
But we bailed em out, embezzled the funds so they aren’t even there, and I can’t believe we haven’t already had a new housing crisis.
And when it happens this time? I hope Trump lets it burn. Will it suck? Yes. But postponing the inevitable will only make it worse.
Alternative link: www.factcheck.org/2014/04/obamaca…-industry/
Hedge funds and other investors in the bailed-out mortgage giants Fannie Mae and Freddie Mac suffered a loss in federal appeals court Tuesday, as a three-judge panel ruled that they could not sue the government for taking profits from them.
The U.S. Court of Appeals for the District of Columbia Circuit told investors, including hedge fund Perry Capital, that the 2009 stimulus law barred courts from considering their claims that Fannie and Freddie’s government caretakers broke the law. The panel also sent back to the lower court the investors’ claims that the government breached contracts.
Fannie and Freddie were taken into government custody during the crisis in 2008 and received about $189 billion in taxpayer funds. Subsequently, they returned to profitability and have returned $256 billion to the Treasury. After the Obama Treasury amended the terms of the bailout in 2012 to take all profits, rather than a fixed dividend, investors sued.
Obama says it is time to wind down Fannie and Freddie
Almost five years after taxpayers bailed out mortgage giants Fannie Mae and Freddie Mac, President Obama said on Tuesday that it’s time for private investors to take a bigger role in the mortgage market.
Fannie and Freddie collapsed in 2008 before being bailed out with almost $200 billion in taxpayer funds.
But with the nation’s real estate market on the mend, Obama said in an address in Phoenix on home ownership that it is time to wind down the two companies and make clear that the days of a guaranteed government bailout are over.
“Obama says it is time to wind down Fannie and Freddie”.
Geez, no wonder, he was tanking both of them to keep The ACA afloat.
The Top 3 Search Providers Reveal this is spreading at all the Alternative Internet NEWS Media Outlets and it is spreading like WILDFIRE!
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