In the new book “Shaky Ground” that’s topping the New York Times best sellers list. Bethany McLean takes us inside the still UNSOLVED mortgage banking crisis that shook the world.
If you think the 2007-2008 global financial meltdown is over, your mistaken reports iHumanMedia.com.
The U.S. debt issue is a reflection of decades of do-nothing-politics in Washington DC. People are fed-up looking for alternative leadership schooled in business fiance like Donald Trump. Fannie Mae and Freddie Mac are yet another financial crisis that remains. It’s the $5 Trillion albatross still hanging over the American taxpayers added James Dean @ iHumanMedia.com.
I recommend every American should read Bethany McLean’s book, “Shaky Ground : The Strange Sage of U.S. Mortgage Giants”.
In the book, financial writer Bethany McLean examines mortgage lending institutions Fannie Mae and Freddie Mac, and their role before, during and since the 2008 financial meltdown. It reveals serious problems still exist including abuse of fiscal responsibility.
“To make things worse, the government decided to “sweep” almost all the duo’s profits into its own coffers, to be used as a slush fund for general government expenses. As Treasury Secretary Jacob J. Lew said in congressional testimony this spring, “As a practical matter it’s what has helped us reduce our overall deficit but may hurt us long-term.”
If there is another downturn in the real estate market and Fannie and Freddie suffer losses on the $5 trillion in outstanding securities, taxpayers will again have to foot the bill. Jim Parrott, a senior adviser with the National Economic Council in the Obama administration and now a fellow at the Urban Institute, wrote that the current system was “the worst of all worlds: It attracts too little private capital, provides too little mortgage credit, and still poses too much risk to the taxpayer.” READ MORE …
How big is USA’s debt?
The government in the USA owes $13.2 trillion in US Treasury Bonds, $5 trillion in money borrowed by the US Federal government from Federal government trust funds like the Social Security trust fund, $0.7 trillion for state bonds issued by the 50 states, $3.7 trillion for the municipal bond market (US towns, cities and counties), $1.97 trillion still owing by Freddie Mac and Fannie Mae, mostly for bad mortgages in years gone by, $6.23 trillion owed by US government authorities other than Fannie Mae and Freddie Mac, $1.04 trillion in loans taken out by the US Federal government (e.g. government credit card balances, short term loans) and $0.63 trillion in loans owed by government authorities (e.g. their government credit card balances, short term loans). As of April 1, 2015, according to the Federal Reserve Bank’s Financial Accounts of the US report, the government in the USA has $32.5 trillion in debt excluding unfunded government pension debts and unfunded government healthcare cost. READ MORE …
Alternative Thinking on Fannie Mae and Freddie Mac …