So instead of an implicit government guarantee Freddie and Fannie will have an explicit guarantee in this latest legislative version of the privatization of profit with the socialization of risk. The stated goal of the Johnson-Crapo bill is to “overhaul” mortgage giants Fannie Mae and Freddie Mac so that “private capital can play the central role in home finance.” (That’s how Barack Obama summed it up.) Of course, that’s not really the purpose at all. The real objective is to hand over the profit-generating mechanism to the private banks (Fannie and Freddie have been raking in the dough for the last three years) while the red ink is passed on to the public. That’s what’s really going on.
Posted on: Wed, 26 Mar 2014 20:04:46 +0000
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