Posted in Barney Frank, Big Government, Corruption, Economics, Executive pay, Fannie Mae, Financial Crisis, Freddie Mac, Obama, Uncategorized, tagged Bailout, Big Government, Corruption, Fannie Mae, Financial Crisis, Freddie Mac, Obama on December 26, 2009|
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Even though politicians already have flushed $400 billion down the rathole, the Obama Administration has announced that it will now give unlimited amounts of our money to prop up Fannie Mae and Freddie Mac, the two government-created mortgage companies. While President Obama should be castigated for this decision, let’s not forget that this latest boondoggle is only possible because President Bush did not do the right thing and liquidate Fannie and Freddie when they collapsed last year. And, to add insult to injury, Obama’s pay czar played Santa Claus and announced that that a dozen top “executives” could divvy up $42 million of bonuses financed by you and me. Not a bad deal for a group of people that more properly should be classified as government bureaucrats. Here’s an excerpt from the Washington Post about the Administration’s latest punch in the gut for taxpayers:
The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress. 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.
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Speaking earlier this week to a group of kids, President Obama invoked Jesus and the three wise men to justify his agenda of redistribution. I’m not exactly a religious scholar, but this surely is absurd. Doesn’t Christianity (and, I assume, Judaism and other faiths) require individuals – using free will – to act charitably? Using the coercive power of government to forcibly redistribute other people’s money, by contrast, is moral preening at best and could be characterized as government thuggery. Writing for Townhall.com, Cal Thomas certainly was not amused:
Speaking Monday afternoon to a group of children from the Washington, D.C., Boys and Girls Club, the president delivered a mini sermon on “why we celebrate Christmas.” He asked the children if they knew. One piped up and said “The birth of baby Jesus.” …The president spoke of what Jesus “symbolizes for people all around the world,” which he said, “is the possibility of peace and people treating each other with respect.” And then, in the best tradition of a community organizer, the president said Jesus is about “doing something for other people.” Even the “three wise men” were invoked to support the president’s idea of wealth redistribution: “…these guys … have all this money, they’ve got all this wealth and power, and they took a long trip to a manger just to see a little baby.” And what conclusion should be drawn from that journey? The president told the children, “…it just shows you that because you’re powerful or you’re wealthy, that’s not what’s important. What’s important is … the kind of spirit you have.” To the president, this means the spirit of government taking from the productive and giving to the nonproductive. To Him, Jesus is a socialist, or perhaps an early Robin Hood. …only people can be compassionate. A government check too often brings dependence and a sense of entitlement.
I must quibble with one small part of Cal’s column. Robin Hood was a freedom fighter, not a redistributionist. His mission was to reclaim money that the nobles stole (i.e., taxed) from the peasantry. Modern society has turned the story upside down.
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