A little less than two years ago, Obama, still in his self-confident propaganda mood, commented on the lavish bonuses that Wall Street banks were giving their own executives. The bonuses were “obscene,” Obama said, and therefore there was a need for a tax on banks. “We want our money back,” said Obama, meaning, of course, he wanted the Federal government to take for itself the money that the banks had taken from their clients and the Federal Reserve. He didn’t mean, of course, that the money will be returned to those that worked hard for them; God forbid that an avowed socialist would return tax money to the tax-payers. The banks’ bonuses were used only as another propaganda line for promoting more socialism.
This last week, it became known, Obama’s own administration approved $13 million for the executives of Fannie Mae and Freddie Mac as “performance bonuses.”
The same Fannie Mae and Freddie Mac who were solely responsible for the mortgage crisis mayhem of the last two years by giving away hundreds of billions of tax-payers’ dollars to sub-prime loaners – thus driving the prices up and creating the housing bubble which burst in 2008. The same Fannie Mae and Freddie Mac that screwed things up so badly that they needed a bailout of $170 billion of tax-payers’ money to keep afloat and keep spending money on people who can never and will never repay it; and according to the FHFA report of October 2010, will need a total of $360 billion – tax-payers’ money again – to get above the water. The same Fannie Mae and Freddie Mac that have a history in the last 10 years of shamelessly lying about their earnings, of deceiving Federal regulators and the public about their operations and true performance, of deliberately suppressing any attempts by investigators to get into the true nature of what these two government companies are actually doing at the expense of the American people.
For these amazing feats, the executives of Fannie Mae and Freddie Mac deserve $13 million of bonuses, Obama’s own administration declared. Apparently, Obama believes, those two companies have done a good job, and their executives deserve a good reward. After all, who can create such a serious financial and debt crisis using only home mortgages. “Ingenious” is the best word to describe the record of these executives.
While the housing market is struggling to recover from the Fannie Mae and Freddie Mac’s expert intervention, and hundreds of thousands of construction workers are without jobs as a consequence of the immoral business practices of these two companies, Obama has forgotten his rant about “obscene bonuses.” When its for his own coterie, bonuses are okay, even for dismal performance records.
Not that we didn’t expect that from Obama.
But this must teach us an important truth: The next Republican President must dissolve these two companies, and save America from the plague of the Federal government involvement in the housing market. Or in any market whatsoever. When we allow the Federal government intervene on the market, we can only expect corruption, immoral business practices, wasting tax-payers’ money to favor private economic and political interests, and economic recessions. The earlier these two agencies get eliminated, the better for the housing market.
And we need to make sure we press the Republican candidates on that issue. We don’t need a Republican President who will only continue the socialist policy of using tax-payers’ money to destroy the free market and serve private interests at the expense of the American people.