Guided by Stillwater

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Unlimited Assistance, Unlimited Hypocrisy

With the holidays now behind us, I am looking forward to getting back in the daily news grind.

This morning, the first story I heard left me fuming: “U.S. promised unlimited financial assistance to Fannie Mae, Freddie Mac“- WAPO

“The Christmas Eve announcement by the Treasury Department means that it can continue to run the companies, which were seized last year, as arms of the government for the rest of President Obama’s current term. But even as the administration was making this open-ended financial commitment, Fannie Mae and Freddie Mac disclosed that they had received approval from their federal regulator to pay $42 million in Wall Street-style compensation packages to 12 top executives for 2009. The compensation packages, including up to $6 million each to Fannie Mae and Freddie Mac’s chief executives, come amid an ongoing public debate about lavish payments to executives at banks and other financial firms that have received taxpayer aid. But while many firms on Wall Street have repaid the assistance, there is no prospect that Fannie Mae and Freddie Mac will do so.”

Are you starting to see a pattern yet? Prior to Christmas Eve, President Obama has already spent more in his first year than any other president in our nation’s history.

Let’s just recall what Obama said (transcript) just two weeks before this unlimited bailout:

“But even as we dig our way out of this deep hole, it’s important that we address the irresponsibility and recklessness that got us into this mess in the first place. Some of it was the result of an era of easy credit, when millions of Americans borrowed beyond their means, bought homes they couldn’t afford, and assumed that housing prices would always rise and the day of reckoning would never come. But much of it was due to the irresponsibility of large financial institutions on Wall Street that gambled on risky loans and complex financial products, seeking short-term profits and big bonuses with little regard for long-term consequences. It was, as some have put it, risk management without the management. And their actions, in the absence of strong oversight, intensified the cycle of bubble-and-bust and led to a financial crisis that threatened to bring down the entire economy…”

Notice how he blames you. It’s not Fannie and Freddie’s fault. It’s your fault the housing market tanked because you bought a home you couldn’t afford. When my wife and I purchased our first home, the sales lady gave us every line in the book to hook us. And not only that, but they gave us a brand-new home with just stated income and a credit score. It was probably the same for you.

“It was a disaster that could have been avoided if we’d had clearer rules of the road for Wall Street and actually enforced them.”

How about clearer rules for the federal government? How about Obama takes his hands off the cookie jar? Our government is bankrupt yet they give a blank check to these companies which in turn will give its execs $6 million in bonuses. If you don’t care, you should. The money is coming from your account.

Lastly- my liberal friends love to echo Obama’s blame game of “I inherited this economy”. They bash Bush for the bank bailout. They forget, however, or maybe just don’t know that Obama himself voted for it. Hello? Bueller? Anyone? The man loves spending your money in the name of “recovery”. This is why he voted for it,”This is what we need to do right now, to prevent the possibility of a crisis turning into a catastrophe.”- Obama

(You should revisit my earlier post- The Time is Later)

UPDATE: I just wanted to post this again. I think it’s relevant.


January 4, 2010 Posted by | Economy, Politics | Leave a comment