S I D E B A R :

WHY GOVERNMENT SECURITY ENTERPRISE INSTITUTIONS WERE CREATED!

 The GSEs are a creation of bankers and politicians who wanted to make mortgage money available to every Citizen!

The bank foreclosures that followed the catastrophic Stock Market Crash of 1929 and brought the New Deal into being caused a revolutionary change regarding debt creation and mechanisms for loaning money to people who needed a roof over their heads: A HOME is a Precious possession and an object of great pride!

It is also generated a humongous market for many products, services and industries! Ideally, the Socialist-Marxist Groups (i.e. the Democratic Party, post Roosevelt era) began agitating for homes for every Citizen, a car in every garage and two chickens in every pot! In those same days other dreams of a perfect world began to take shape here in the U.S. of A.!

Such Dreams were destined to become a Nightmare!

Actually, the reason for politicians warm and inspiring words about "Every family needs a HOME" persisted for a reason that few of you have ever heard. A single family HOME on a small patch of land represents a major economic object! It builds a large tax base for property taxes, the main source of funds for local governments. People who raise their families in their own home are better, more reliable workers. And, if they take care of their home, they will spend money on maintenance and repairs. The Housing Industry is the key to prosperity in every country! None has been more generous and reckless than in America!

Unfortunately, not every married adult couple can afford the money necessary to own their own home. Many can barely afford a car, especially when they will only buy a German made car or a high performance super deluxe Whatchamacallit!

The great attraction in this country to people who sell things is the unbelievable amount of money available for borrowing: the Credit Industry. Without CREDIT, irresponsible borrowing would not exist and people would not be in debt! Every kind of Lender exists today -- most of them using predatory selling practices. The documents that the Buyer must sign use intentionally confusing legalese language, so most people proceed on Blind Trust: if it is not on the UP-and-UP the Federal government will hold them harmless! God Love the Federal Government! Today, we have a perfect example of an old cliché to the effect that YOU CAN SOMETIMES HAVE TOO MUCH OF A GOOD THING! Yea, Verily!!

Bankers and Financial experts know that you cannot loan money to people who cannot pay off such debts. But politicians in Washington in cahoots with crafty money manipulators invented the idea that the big wealthy Federal Government could guarantee those loans which meant that a form of insurance (an institution) could be created to sell a mix of mortgages with an attractive yield over time. Who would buy them? Wall Street investment banks! They sell billions of dollars worth of U.S. Mortgages to wealthy Middle Eastern potentates who make so much money off their oil wells that they like to buy U.S. paper which makes them richer! Eventually, in this game of Good & Bad Mortgage paper, things will go sour especially when Political Ideologues push the system into overdrive! We have been there for ten years at least!

In the old days when banks were the major lenders of mortgages, things were pretty tight. Democrats were not happy with cautious lenders because they couldn't promise their Poor constituents at home that they would make it easier for them to buy a home.

With Democrats running the Congress for seventy years while Republicans sat on the back benches, the Socialists created more GSEs funding them with unbelievable amounts of taxpayer money -- all done quietly to the joy of the Banks and Mortgage Writers and the Wall Street investment community! No politician or group of politicians should be permitted to guarantee billions of dollars worth of loans that YOU and I will pay without our specific permission via a NATIONAL REFERENDUM!

GSE funding in recent years has absorbed as much as $6-$8 billion per year as the FANNIE MAE and FREDDIE MAC mortgage banks kept sinking into more debt due to irresponsible management theft and financial finagling, much of it promoted by the Jews in Congress whose cousins on Wall Street were making a bundle!

The Sub-Prime Mortgage fiasco has been collapsing in slow motion since those mortgages went into default! Not a Soul in Washington has had the courage or Integrity to deal with it choosing rather to wait for the right time to let it out of the cage which was early this year -- an Election Year when the Democrats hope to hang the Sub-Prime Scandal on George Bush and the Republicans! After all, they have blamed him for everything that has gone wrong on Wall Street -- a place that is a three ring circus owned by the New York Jews!

The very existence of FANNIE MAE and FREDDIE MAC has been used to create a false sense of security for many years. But why has it gone sour in the last decade? ANSWER: The Liberal Baby Boomer politicians took over the USA when Bill Clinton was elected (1992) and his Rhodes Scholar buddies, his Hollywood friends and the Wall Street Jews have radicalized every aspect of our financial condition. Much of this trouble I lay at the door of the collapse of our political party system that is rotten to the core!  

Jayson Quigham, Ph.D.