Sunday, September 7, 2008

Barack Obama wants Fannie and Freddie Shareholders to Take Hit

Treasury to Rescue Fannie and Freddie -

The Bush administration yesterday prepared to take over the troubled housing finance companies Fannie Mae and Freddie Mac, after concluding the companies don't have enough capital to continue to play their crucial role funding home mortgages.

Under the plan, engineered by Treasury Secretary Henry M. Paulson Jr., the government would place the two companies under "conservatorship," a legal status akin to Chapter 11 bankruptcy. Their boards and chief executives would be fired and a government agency, the Federal Housing Finance Agency, would appoint new chief executives.

Treasury Secretary Henry Paulson

Obama agreed that action was needed. "Intervention was necessary, but at a campaign stop he said he was withholding judgment until he could see details. "We have to protect taxpayers and not bail out the shareholders and management," Obama said. Do you understand what he said? Withholding judgement untill he could see the polls?

Obama said that we must protect taxpayers. How does the government protect taxpayers? Barack is this the rich taxpayers that needs to be protected or the poor taxpayers that you want to protect? Let's put it another way, do you want to protect people who pay taxes or businesses? The evil oil companies and the tobacco companies pay plenty of taxes. Barack, are these the taxpayer that need to be protected? Over the past 25 years,. oil companies directly paid or remitted more than $2.2 trillion in taxes. Tobacco companies directly paid $5.878 billion a year in taxes. I think Barack meant poor tax payers.

Obama said we must no bail out the shareholders and management. Well first their
boards and chief executives would be fired and a government agency, the Federal Housing Finance Agency, would appoint new chief executives.This is what Treasury Secretary Henry M Paulson said. Plus with the U.S. Treasury backing the companies $1.6 trillion debt will leave shareholders shares nearly valueless. So Barack, no one is helping the rich by taking money from the poor.

So Barack Obama believes that we should not take money from taxpayer to bail out rich shareholders and high paid management. But he is willing to take more money from taxpayers, you and me, to pay for his new programs. Remember the Democrats believes in Pay as you Go. So with a Democrat in the White House and a Democratic House and Senate, they will be picking our pockets.

Moe post on Obama.
Barack Obama puts President Clinton on Short leash.
Barack Obama's Vice President pick, Joe Biden, big Yawn.

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