Fannie & Freddie's Takeover.

Long known as GSEs or Government Sponsored Enterprises, Fannie Mae created in 1938 as a government agency until it was privatized in 1968 by President Johnson, and Freddie Mac are now GOEs. (Government Owned Enterprises).
The fortunes of the two companies have mirrored the slumping housing market where they played a critical role. Some said that they were "too big to fail". Now it is on our backs that the risk rests, not the profits. One may understand the problems that may have hit the economy if they were allowed to fail, the real question is why did the government let this happen? The huge tab that will follow is not even known. A decision of this magnitude is left to non-elected officials who oversaw the disaster. Yes, the heads of the two institutions were removed, but where is the money that they took? Should the public ask for some of this money back? How about the investors who benefited handsomely from this mess? Are they held accountable?
Today's makeover masks the deceit of a bureaucracy whose short term focus has led the public to get on the hook for 5 trillion dollars with little to show for.
After Bear and Sterns (BS) and Indymac, who will be next?
The lessons that we draw from this masquerade are that the government will do anything to protect the so-called global economy at the expense of the taxpayers each and every time.
On the more basic level, even the best qualified mortgage applicant is subjected to the highest level of scrutiny in the name of transparency. Mortgage applicants are required to submit their life history to get a loan that has a collateral, how about doing the same with those companies that get billions without the same?
Mortgage interest rates and fees continue to go up, making the American dream of owning a home a nightmare, foreclosures and unemployment hit record levels, why not take over these mortgages?
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