This goes into the “Best of Santelli” CNBC Rant Hall of Fame…
Rep. Paul Kagorski (D-Pa.) told CNBC viewers that “Democrats’ couldn’t reform Fannie & Freddie in their financial regulation bill, because it was too complicated.”
Santelli blasts Kanjorski, asking… “Do you think taxpayers that go to work to pay the money you are subsidizing are going to buy complicated as an excuse?”
The taxpayer funded bailouts directed towards the toxic wasteland known as Fannie and Freddie are seemingly endless. The Financial Times reported…
“Fannie Mae said on Monday it would need an additional $8.4bn in aid, as the US government-controlled mortgage finance company continued to suffer heavy losses on its bad loans… Fannie Mae’s appeal for help comes on the heels of a similar plea last week by smaller rival Freddie Mac, which asked for an additional $10.6bn cash infusion. The latest requests for aid bring the total amount of taxpayer dollars drawn down by these companies to $148bn since the 2008 government-led bail-out.”
Total taxpayer liability for Fannie & Freeddie is approximately $8 trillion dollars, including public debt and loan guarantees. And there seems to be no end in sight, as noted by the New York Times:
“Fannie Mae’s request on Monday for another $8.4 billion in federal aid comes at a politically inconvenient time for the Obama administration, which is pressing to pass sweeping financial legislation without resolving the company’s future…. Democrats want to defer an overhaul of federal housing policy until next year, after the midterm elections. But Republicans have seized on the continuing losses to argue that a plan for the two companies should be a priority of the current legislation.”
Republicans have been pushing for an end to Fannie & Freddie bailouts that would get the government out of the mortgage business once and for all. However Democrats are not only unwilling to budge on reforming Fannie and Freddie, they’re hellbent on throwing good money after bad, by doubling down on the failed government mortgage companies and burning through hundreds of billions of taxpayer dollars.
A House Republicans plan would phase out taxpayer subsidies of Fannie Mae and Freddie Mac over a number of years and end the current model of privatized profits and taxpayer losses…
Bought and paid for political shills like (D-Pa.) Rep. Paul Kanjorski are no longer able to come on national television and shovel their scripted talking points upon the public without going unchallenged.
The American people know the bankers used Fannie & Freddie as a toxic waste dump to unload worthless mortgage paper that they wouldn’t dare carry on their own books.
They know the Obama administration and Congress tried to sneak yet another Fannie & Freddie bailout past them on Christmas Eve and they know it won’t be the last.
And they know the bailout of Greece isn’t a bailout of the Greek citizenry, but yet another Bank Bailout.
Kudos to Rick Santelli for continually having the courage to speak up for Main Street into Wall Street’s ongoing Lootapalooza.
→ No CommentsTags: $8 trillion dollar backstop to Fannie & Freddie·Fannie Mae reform·Rep. Paul Kanjorski·Rick Santelli·Santelli CNBC Rants
Fortune Magazine & The Men Who Really Cost America A Fortune
April 15th, 2010 · 1 Comment · Politics, Money and Markets
Both CNN Money and Real Clear Markets featured a story this morning from Fortune Magazine’s William D. Cohan, titled, “The Man Who Cost Merrill Shareholders $50 Billion.” And perhaps no single story since the financial meltdown of 2008, better communicates the complete disconnect between Wall Street and Main Street than this one…
“The Man Who Cost Merrill Shareholders $50 Billion.”
First, there’s the headline: “The Man Who Cost Merrill Shareholders $50 Billion,” which refers to Alberto Cribiore, an investment banking, opera aficionado, who also happened to be the Merrill board member who stopped CEO Stan O’Neal from selling a sinking Mother Merrill… mortally wounded in Stan O’Neal’s opinion, by a $45 billion dollar toxic CDO time bomb.
In 2007, O’Neal who was increasingly worried about Merrill’s toxic CDO’s, twice tried to finalize deals to offload Merrill Lynch, including a deal with Bank of America for $100 billion, only to be stymied each time by Cribiore
A year later, at the peak of the financial crisis, Merrill was finally offloaded to Bank of America for $50 billion, with the takeaway for Mr. Cohan of Fortune Magazine and those on Wall Street being…
“Alberto Cribiore cost Merrill shareholders $50 billion.”
Talk about not getting it…
Stan O’Neal and his Wall Street cohort’s unbridled greed, toxic derivatives, and Enron-style accounting, cost taxpayers $700 billion dollars in TARP bailouts alone, including $45 billion dollars that went to Merill’s buyer—Bank of America.
And what did Stan O’Neal receive in return for bankrupting a near 100 year old icon that had weathered two World Wars and the Great Depression? A golden parachute worth a reported $161 million dollars.
And what did America get?
– 39 million Americans on Food Stamps.
– 8 million foreclosures.
– A 17% real (U6) unemployment rate.
– A bill for $23.7 trillion dollars in bank bailouts, backstops, and guarantees.
– And a Fed Chairman now telling America that “modifications” need to be made to Social Security.
And Fortune Magazine’s William D. Cohan thinks “the story” is Merrill shareholders being short-changed out of $50 billion?
William D. Cohan thinks “the story” is Alberto Cribiore costing Merrill Lynch shareholders $50 billion, not Stan O’Neal and his fellow Wall Street Bankster-Gangsters costing America $23.7 trillion.
Talk about being completely out of touch with reality.
What planet are these people living on?
And what are they smoking?
This administration is now talking about converting private 401K’s and IRA retirement accounts into government annuities. And they’re strong-arming pension funds to prop up insolvent banks because the FDIC is broke. And now Fed Chairman Ben Bernanke is talking about the need to make “modifications” (read: cuts) to Social Security.
If this isn’t final confirmation that those inside the beltway and on Wall Street still don’t get it, and never will—nothing is.
America, they don’t care that you line the steps of the Capitol in protest to them ignoring the will of the people. Nancy Pelosi and the Democrat’s “in your face” arm in arm march through the Tea Party crowd proved that.
Wall Street just looted the U.S. Treasury, and Congress long ago looted the Social Security lockbox, and now they’re trying to stick you with the bill.
Please tell me you’re not this stupid America.
Please tell me you won’t rollover on this.
Please tell me you’ll take your protest to a whole new level.
And please, do not let them get away with this.