Taxpayers still suckers on mortgage lending
My latest column discusses the taxpayers’ enduring role as “suckers of last resort” on mortgage lending. Read TAXPAYERS AND HOUSING NEED A DIVORCE.
It also addresses dangerous political pandering on the subject of Fannie Mae and Freddie Mac, while noting their outrageous deal as private profit-making companies enjoying “implicit” government guarantees on their mortgage-backed securities. The government has since taken over the companies.
“Submitted for your approval,” as Rod Serling used to say before each episode of Twighlight Zone. Here is a chart from The Washington Post showing just how closely Fannie Mae’s reported income matched the targets executives set to receive maximum bonuses.
SOURCE: OFHEO Report of the Special Examination of Fannie Mae | The Washington Post – May 24, 2006
© 2006 The Washington Post Company
Tags: housing, taxpayers, Wall Street
