While the progressive socialist democrats are attempting to smear, criminalize, and impeach President Donald J. Trump, let us not forget that justice in America is not always just …
Here we have Hillary Clinton, investigated by the FBI and whose crimes are clearly defined and enumerated, not to mention that one of the biggest attempts to manipulate an American presidential election came not from the Russians, but from Hillary Clinton’s campaign in the guise of a fake dossier that sought to smear candidate Trump. FBI Director Comey’s bizarre behavior and the fact that he usurped the power of the Deputy Attorney General of the United States and misread the relevant espionage statute to give her a “stay out of jail” card is worthy of investigation itself.
On the other hand, we now find that the Federal Financing Housing Agency is putting forth a report that tells us how wonderful the finances are at Fannie Mae and Freddie Mac. That in the case of an adverse scenario, it will ONLY take approximately $100 BILLION of the taxpayer’s money to bail them out – thus indicating the government’s reluctance to allow these two institutions to fail. Whatever happened to the planned reduction in the sizes of financial institutions to reduce their systemic risk to our economy? As far as I can tell, most financial institutions grew bigger than before.
“In the Severely Adverse scenario, incremental Treasury draws are projected to range between $34.8 billion and $99.6 billion depending on the treatment of deferred tax assets. The remaining funding commitment under the PSPAs [Preferred Stock Purchase Agreements] after the projected draws is $223.2 billion, without establishing valuation allowances on deferred tax assets. Assuming both Enterprises establish valuation allowances on deferred tax assets, the remaining funding commitment is $158.4 billion.”
The adverse scenario … “The 2017 DFAST [Dodd-Frank Act Stress Tests] Severely Adverse scenario is based upon a severe global recession which is accompanied by a period of elevated stress in corporate financial and commercial real estate markets. It includes large reductions in asset prices, significant widening of corporate bond spreads, and strained market liquidity conditions. The scenario is not a forecast, but instead is a hypothetical future economic environment designed to assess the strength of the Enterprises and other financial institutions and their resilience to unfavorable market conditions.” <Source>
Both of these institutions were creations of progressive socialist democrats who used them as political piggy-banks and as an employer that could reward party faithful with tens of millions of dollars in salary and bonuses. Bonuses which were later found to be a function of cooking the books that required $2 BILLION dollars to audit and restate their results.
Bottom line …
It is ironic that the protective legislation, the Dodd-Frank Act, was named for two of the most corrupt politicians in Congress; Christopher Dodd, the sexual predator (one-half of the Dodd-Kennedy Waitress Sandwich) and Chairman of the Senate Banking Committee and Barney Frank, the Chairman of the House Financial Services Committee. Both were telling the public and regulators that Fannie Mae and Freddie Mac were solvent and sound just weeks before being taken over by a government conservatorship rather than allow a bankruptcy court to reveal the financial shenanigans that occurred under the Democrat’s watchful eyes.
A side note, Donald Trump, Junior and Jared Kushner were being represented by top Democrat Attorney/Fixer Jamie Gorelick who served as the Vice Chairman of Fannie Mae from 1997 to 2003. Regulators found that Fannie Mae misstated earnings by about $10.6 billion from 1998 through 2004. The likelihood that the amount was much greater if you did not rely on artificial accounting rules.
And, if you recognize her name, it might be because she was the architect of the wall between the FBI and the CIA that prevented investigators from discovering the 9/11 plot because they could not search one of the hijacker’s laptops before the horrific event that cost 3,000 people their lives and destroyed the twin towers. <Source>
Of course, both Fannie Mae and Freddie Mac were permitted to pay a “record fine” without admitting or denying the allegations.
The one thing that President Trump has not addressed nor is likely to address is the subject of political corruption and the financial misdeeds of his friends on Wall Street.
We are so screwed.
"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius