Senator Charles Schumer is simply an obedient little rent boy servicing his big investment bank masters, doing their bidding regardless of what's best for his constituents and America.
Chuck Schumer is shamelessly and obviously corrupt. But the entire US political system has been corrupted by a campaign financing system run amok. Now Schumer (and his best buddy Ben Bernanke) are calling for corrupt and deceptive house-of-cards Fannie Mae to take on $1 million Jumbo loans .
Sick folks. The system is sick. And Schumer represents the disease.
CHARLES E. SCHUMER: CAREER PROFILE (SINCE 1989)
1 Goldman Sachs $458,440
2 Citigroup Inc $399,716
3 JP Morgan Chase & Co $325,200
4 Morgan Stanley $298,946
5 Bear Stearns $230,350
6 Merrill Lynch $226,150
7 UBS Americas $222,000
8 Credit Suisse Group $199,044
9 Lehman Brothers $181,450
10 Time Warner $167,500
And in related news:
Schumer wants Fannie and Freddie to be able to take on $1 million loans
If Bernanke's congressional brain fart becomes law, taxpayers will no longer just be serving as the backstop for private companies charged with assisting in the national goal of expanding affordable housing. (That was the original mission of Fannie and Freddie, as pointed out by the good folks at Housing Doom, who brought this story to my attention.) Nope, if Ben gets his way, you and I will be forced into the business of guaranteeing loans for Americans who simply have to have that 4,500-square-foot McMansion.
It shouldn't surprise anyone that Sen. Chuck Schumer (D-N.Y.) thinks this is a peachy idea. Chuck -- who, of course, said absolutely nothing about the problems and excesses in lending while the housing bubble was inflating -- has been making hay about the correction for months.
That's understandable. After all, his Wall Street constituents -- Citigroup (NYSE: C), Merrill Lynch (NYSE: MER), Morgan Stanley (NYSE: MS), and Wachovia (NYSE: WB) -- need a major metaphorical Heimlich to save them from choking on a diet of bad-loan dog food of their own making.
A taxpayer-sponsored plan to let Fannie and Freddie buy up big loans would certainly help them out, providing the "liquidity" that real investors -- quite rightly -- are loath to provide these days.