Carnival of Capitalistic Anarchy

[Donnachaidh]

http://www.opednews.com/articles/Carnival-of-Capitalistic-A-by-David-Glenn-Cox-110210-797.html

"Just a minute... just a minute. Now, hold on, Mr. Potter. You're right when you say my father was no businessman. I know that. Why he ever started this cheap, penny-ante Building and Loan, I'll never know. But neither you nor anyone else can say anything against his character, because his whole life was... why, in the 25 years since he and his brother, Uncle Billy, started this thing, he never once thought of himself. Isn't that right, Uncle Billy? He didn't save enough money to send Harry away to college, let alone me. But he did help a few people get out of your slums, Mr. Potter, and what's wrong with that? Why... here, you're all businessmen here. Doesn't it make them better citizens? Doesn't it make them better customers? You... you said... what'd you say a minute ago? They had to wait and save their money before they even ought to think of a decent home. Wait? Wait for what? Until their children grow up and leave them? Until they're so old and broken down that they... Do you know how long it takes a working man to save $5,000? Just remember this, Mr. Potter, that this rabble you're talking about... they do most of the working and paying and living and dying in this community. Well, is it too much to have them work and pay and live and die in a couple of decent rooms and a bath? Anyway, my father didn't think so. People were human beings to him. But to you, a warped, frustrated old man, they're cattle." George Bailey "It's a Wonderful Life"

Bloomberg- "U.S. Treasury Secretary Timothy F. Geithner will present Congress with three options for reducing the government's role in the nation's housing finance system and shrinking the footprint of mortgage companies Fannie Mae and Freddie Mac, according to two people familiar with the plan."

The Federal National Mortgage Association (FNMA) Fannie Mae was set up as part of the New Deal. Originally, it was a freestanding publicly traded company it was changed in 1968 to a government sponsored enterprise. The purpose of Fannie Mae was to allow banks to issue mortgage loans, then the lending institution could sell that mortgage to Fannie Mae and receive new capital to make more loans.

The purpose, was to help increase the level of home ownership for America's middle class. Before the New Deal most home mortgages were only fifteen years with a large down payment and a large payment at the end of the note. By assisting American's to buy a home, it does make them better citizens. It makes them taxpayers. It creates jobs, renters don't spend the money that homeowners will spend on shrubs, blinds, wallpaper or any of a thousand other sundry items. This is important to take note of, the Democratic administration of Barack Obama is actively participating in the dismantling of government assistance for home mortgage loans.


More at the link --