Talk about easy.
Today they are grinning in the Obama administration about the success of the Fannie Mae and Freddie Mac bailout.
Combined, the allegedly private mortgage companies have returned over $200 billion to the United States Department of the Treasury, after the government spent $180 billion in bailing them out.
Oh, and the news gets better.
“U.S. government-owned mortgage financiers Fannie Mae and Freddie Mac could send about $179.2 billion in profits to taxpayers over the next 10 years,” reports Reuters, “if the terms of their bailout remain intact, the White House budget office said on Monday.”
Like most things with this administration, it seems like such a good deal, until you realize where the profits came from: the government.
I know you’re shocked: The government is sending money to Fannie Mae and Freddie Mac so that the government can get the money back that they sent them originally.Click here to listen to Ransom Notes Radio live or for archives of previous shows.
But, yeah. This is Obama. Kind of like Enron-- the smartest guy in the room-- only immune from prosecution.
And why should it surprise us? Isn't this the premise of Obamacare? Isn’t this what happened in the GM bailout?
Here’s how taxpayers got the GM treatment from Fannie and Freddie—are still getting it in fact:
The Federal Reserve Bank has a balance sheet of about $4 trillion in U.S. government securities right now. $1.8 trillion of that is in mortgage securities, most of which came from Fannie and Freddie portfolios that were sold to the Fed—and continue to be sold to the Fed—under quantitative easing (QE).
Oh, but it gets better.