“Left Foot Blue” Could Tumble Fannie Mae
Every now and then I find blogs to read whose messages are serious, yet hilarity ensues. IowaHawk has written two posts about the mortgage crisis and about how Fannie Mae is like the drunk fat chick,
It’s useful to think of our current economic situation as a spirited game of nude Twister, with Fannie Mae as an extremely fat drunk chick. One unanticipated “Left Foot Blue” spin could mean a trip to the emergency room for all of us, not to mention uncomfortable explanations for our various wives. It is critical that Congress makes sure that Fannie Mae gets the additional “do over” spins necessary to keep her from crushing us on the vinyl.
Dave goes on to explain how much money the federal government needs to find to bail out Fannie Mae and Freddie Mac,
Fannie Mae is a government company type thing that has a large pile of money, which I will call “A”. The first thing it does is create $20 million bonuses for high performance executives like Franklin Raines, James Johnson and Jamie Gorelick, which I will call “B.” Next, it allocates an amount “C” to lobbyists to make sure important Congressmen always get a thoughtful holiday card from Fannie Mae. After subtracting B and C from A, they are left with D, which is lent to homebuyers. These homebuyers then pay back the amount E, which, when subtracted from D, leaves F, the amount Congress has to come up with. In order to keep this important financial system humming along at peak efficiency, it is necessary that you, the taxpayer, are F’ed.
His description is really fairly simple, but if you want to read more serious posts here are links to other news sources that explain it in much more news-like terms.
House passes housing rescue bill - by MSNBC
Republicans urge Bush to reject housing bill - by Fox
Fannie’s new watchdog: all bark? - by CNN Money - Fortune
Mortgage loans about to get more expensive - by Banks.com
See you tomorrow!
H/T to Les Jones!
