Subsidized Shylocks June 24, 2010

by Will

Will Grigg?s Liberty Minute

June 24, 2010

With the exception of the Federal Reserve ? the government?s official counterfeiting arm ? no institution did more to inflate the recently collapsed housing bubble than Fannie Mae.

By acting as a government-guaranteed backstop, Fannie Mae and its counterpart, Freddie Mac, encouraged lenders to issue mortgages to unqualified home buyers. In late 2008, the government formally assumed control of Fannie and Freddie, using money extorted from taxpayers to bail them out, thereby preserving the benefits enjoyed by their well-compensated corporate apparatchiks.

A growing number of homeowners are now in a position of negative equity ? meaning they owe more than their homes are worth. Many people in that position are considering ?strategic default? ? walking away from their mortgages.

Rather than negotiating with homeowners, Fannie and other subsidized Shylocks are prepared to seize other assets ? such as cars and bank accounts -- from people left in an untenable financial position due to machinations over which they have no control.

This is the kind of thing that leads to revolution.

Let us take back the liberty wherewith Christ has made us free.

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