Sunday, August 19, 2012

Alas, poor Freddie and Fannie

The Treasury Department has decided to go full steam ahead with the elimination of the government backed home mortgage holding companies. The bankers love the idea since in their absence they can securit-ize all the home loans, and we all know how well that works out. Hopefully this is just election year posturing to counter claims that Obama is a socialist, but it's a very faint hope.

In a rational world the government would hold all the surplus mortgages (ones not held by Credit Unions) at cost instead of letting rich people take a big slice off the top of everything. Rightwingers just have to have their "capitalism", no matter what the cost to them personally. But hey, someday they'll win the lottery and be rich themselves.