The President signed into law the so called mortgage relief bill, H.R. 3221, which really should be called the Fannie Mae and Freddie Mac Relief Bill. This bill will bring no mortgage relief to anyone other than investors in GSE debt and stock holders.

In an AP report, White House spokesman Tony Fratto said,

“We look forward to put in place new authorities to improve confidence and stability in markets.”

This quote undoubted tells anyone who cares to listen what the Administrations goals were in passing this bill. And they did it in record time…about 3 weeks from start to finish. It just goes to show you all the garbage about how Congress can’t work together to get things done is just that…garbage.

When a major campaign contributor like Fannie Mae needs a government bailout to stay afloat…the Congress works together just fine. This is a company that made huge profits over the last 30 years, resisted regulation, and hid accounting mistakes regularly from their current regulator OFHEO, all the while knowing their considerable political clout would insure a bail out should they need one.

The Treasury Department is given unlimited power for the next 18 months to lend to Fannie Mae and Freddie Mac or buy their stock to prop them up. An unheard of move in US history…the Treasury buying stock in a private company…

Disgusting…

You can read more about the supposed mortgage relief bill in my post, Housing Economic Recovery Act of 2008 No Help For Consumers

Good Luck!

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