Everything that's wrong with US politics today is represented by Senator Chuck Schumer, the rent boy of JP Morgan, Goldman Sachs, Citigroup and more

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)
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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.

Deutsche Bank expects fuc*ed brokerages to announce ANOTHER $10 billion mortgage mess markdown. Meanwhile Citi is expected to take $11 billion itself

$10 billion here, $10 billion there, and soon you're talking about real money. Just like ENRON.

Too bad Deutsche and others haven't figured out the REAL ugly truth yet. That the mark-to-market markdown will be in the HUNDREDS of billions if not trillions by the time its done, with bank failures everywhere. Get ready everyone.

Even the super-SIV that was supposed to help hide the truth is blowing up as people come to realize it was a big scam. Well, then again maybe they all know, and they just don't want to admit it yet. After all, they still have some shares to dump ya know.

Meanwhile, Citi axed its CEO tonight and will be shocking the market with another massive markdown. But no surprises for HP'ers. We knew all along.

LONDON -- Banks are likely to mark down another $10 billion of mortgage assets in the fourth quarter, according to one analyst's estimates.

Deutsche Bank analyst Michael Mayo said in a note Thursday that banks and brokerages are likely to see their earnings pressured through the rest of 2007.

Merrill Lynch & Co. Inc. and Citibank Inc. are expected to be hit the hardest. Mayo estimated each bank would write down $4 billion in the fourth quarter.

He said Bear Stearns Cos. Inc., Morgan Stanley, Bank of America Corp. and Wachovia Corp. are also likely to take markdowns.