Gotta love the incompetent corrupt monkeys in Congress intent on screwing the America people because the NAR's lobbyists promised them a bunch of money for their re-election campaigns. Lockhart, Treasury Secretary "I got run down by a bipartisan steamroller," Paulson said at a White House briefing. "Republicans and Democrats were united on this."
Fannie and Freddie should not be allowed to take on loans (that nobody else in their right minds would buy) up to the new $729,750 limit because they DO NOT HAVE SUFFICIENT CAPITAL, NOR DO THEY HAVE SUFFICIENT RISK MANAGEMENT IN PLACE, and even Bush and Paulson know this.
The eventual writedowns and taxpayer bailout will be in the trillions HP'ers. It'll make Citibank and Merrill's messes look like a day in the park.
This should be illegal. And when there is a Federal bailout of Fannie and Freddie, the congressmen and women who voted for this insanity, AGAINST the wishes of Fannie and Freddie's oversight agency and the Treasury secretary, should be arrested for treason. And the NAR lobbyists who bribed them should be tracked down and dealt with in the public square.
STATEMENT OF OFHEO DIRECTOR JAMES B. LOCKHART ON CONFORMING LOAN LIMIT INCREASE
We are very disappointed in the proposal to increase the conforming loan limit as we believe it is a mistake to do so in the absence of comprehensive GSE regulatory reform. To restore confidence in the markets we must ensure that the GSEs’ regulator has all the necessary safety and soundness tools.
Yesterday Chairman Dodd talked about moving a GSE reform bill early this year. We are ready to work with him and the Senate Banking Committee. We will also be working with Fannie Mae and Freddie Mac to ensure that any increase in the conforming loan limit moves through their rigorous new product approval process quickly and has appropriate risk management policies and capital in place.
Lockhart, Treasury Secretary
"I got run down by a bipartisan steamroller," Paulson said at a White House briefing. "Republicans and Democrats were united on this."