Wednesday, August 20, 2008

Fannie and Freddie: friends in low places

The American taxpayers are, in essence, guaranteeing $5 trillion of Fannie Mae and Freddie Mac debt. The Federal Reserve stands by to subsidize Fannie's and Freddie's stock in the stock market. Fannie and Freddie continue to pay dividends to their shareholders. All the profit goes to the shareholders and management. The taxpayers get no compensation or payback for saving all of Fannie and Freddie’s equity and essentially guaranteeing their income. The management of Fannie and Freddie get to keep all their compensation and bonuses. They get to spend as much as they want on more lobbyists and law firms. They and their foundations can continue to hand out money to universities and not-for-profits. [Emphasis added]
— "The Housing and Economic Recovery Act of 2008," an analysis by Catherine Austin Fitts (see Part VI)

Past recipients of money from Fannie Mae, whose bail you are posting if you are a U.S. taxpayer:

Harvard University, $5,031,000; Brookings Institution, $3,906,000; Acorn, $797,000; Citizenship Education Fund (Rainbow Coaliltion/PUSH), $660,000; Center for Policy Alternatives, $635,000; Congressional Black Caucus Foundation, $608,000; Manhattan Institute for Policy Research, $600,000; Center on Budget and Policy Priorities, $400,000; Congressional Hispanic Caucus Institute, $285,000. (Source:

In helping to save Fannie, you can be proud of your charitable giving, voluntary or not. Well, not. Harvard certainly needs the money, and as for the Congressional Black Caucus Foundation, the Rainbow Coalition/PUSH, the Congressional Hispanic Caucus Institute, etc., your money is creating a more "vibrant" America.


No comments: