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Saturday, December 26, 2009

Obama: Unlimited Assistance to Fannie, Freddie

In a typical Obama move to control the mortgage industry and remove any pretense of financial responsibility, his administration promised unlimited aid to Fannie and Freddie, even if it costs another $1,000,000,000,000.00 (yes, there are a lot of zeros in a trillion). Oh, and the pay czar also removed the compensation limits for the senior executives - because of course, they are Democrats.

What this means is that Fannie and Freddie have no requirement to either underwrite responsibly or operate efficiently. Obama officially calls the shots in the mortgage industry.

And of course, it was announced on Christmas Eve - the same day Washignton took over the healthcare industry. Hugo Chavez would be extremely proud.