Fannie Mae and Freddie Mac's (Heavy) Hand in Government
Affairs
This week's government takeover of Fannie
Mae and Freddie Mac marked the shutdown, apparently, of
one of Washington's most robust influence machines.
Together, the two mortgage buyers spent nearly $200
million on lobbying and campaign contributions over the
last two decades, throwing their weight around more like
corporations than the government-sponsored enterprises
they were. And when Fannie and Freddie faced collapse,
those in government were there to help, ironic
considering that for so many years the companies'
political strategy was to avoid government involvement
in their business. So how much did Fannie and Freddie's
contributions and lobbying contribute to Congress's
hands-off approach? That's hard to determine, but we do
have hard data to measure the companies' investment in
politicians. Not only have more than 350 current members
of Congress collected a total of $4.8 million in
campaign contributions associated with Fannie Mae and
Freddie Mac since 1989, but 28 lawmakers had up to $1.7
million of their own money invested in the companies
last year.
The
Fiscally Insane Bailout Bill Might Not Pass -- Here's 5
Reasons It Shouldn't
The scheme would force
taxpayers to absorb the pain, while Wall Street execs
reap the gain.
by David Sirota
See:
http://www.alternet.org/workplace/100700/?page=entire
Workers need
jobs and a raise-not a psychiatrist
During the last eight years. almost all of the nation's
income growth went to executives and investors. As a
result, while the productivity increased and the economy
grew to more than $13 trillion a year, most Americans
fell further and further behind.
Between 1976 and 2006, the numbers of hours worked by
the median two-parent household increased by 400 hours
per year.
Productivity increased by 18% between 2000 and 2007
alone. Yet middle-income, working-age households-those
headed by someone less than 65-lost ground over these
years. Their median income, after adjusting for
inflation, fell by $2,000 from $58,500 to $56,500 (2007
dollars).
See
the complete blog article
HERE
OF
COURSE when you have a pie that has become fixed in
size because of the exporting of jobs and cash to
other countries, and the wealthy are increasing
their piece of the pie by 15-25% per year, that
"wealth growth" has to come from somewhere. And it
comes from the middle class in the reduction in jobs
and health care coverage.
That's
because the wealthy are funding the political
campaigns and the middle class aren't. The wealthy
are keeping elected the very politicians that set
the rules of the game, that set the regulations and
deregulations to favor the campaign contributors
rather than the benefit the people and the country.
I've
also written about the problem here:
Are we having fun yet?
Only
when we have full public funding of campaigns will
the public win back its congress.
Even after the new president
and congress are elected, the same old special interests
remain in power. Only when we have public funding of
campaigns will that change.
I found this guy’s definition of liberal and
conservative interesting:
Speaking on health care:
Comments
I would amend your definitions:
Liberal: Can't we do what other
countries have done by assuming we have a collective
responsibility to each other? That taking care of
someone else means they will take care of us? And
how can we politically do this against a stubborn
belief in "free" markets? Let's face it, the value
of a doctor's care when one is having a heart attack
is infinite. How can we pay that?
Conservative: We can't allow those
less deserving to drag the rest of us down. We must
make sure that the undeserving don't get benefits.
We must make sure that there is corporate reward for
taking the risk of insuring people. We must make
everyone pay for his or her misfortune, uninformed
decisions, and long-term outcomes that no one can
guess. Only then can we assure short-term growth
that might trickle down in the form of a doctor's
attention.
This is according to my jaundiced
view, mind you.
Define "more affordable?"
In an era where "rich" means "have
lots of paper worth phony money that only has value
so long as we don't all try to redeem that paper at
once," "more affordable" really translates to
"slightly less ruinous to the average
paycheck-earner."
The average Joe and Jane sweat over
whether the 10-year-old Ford's transmission really
will cost them $2000 to replace when they have $159
in the bank. The average of us see a less-than-major
operation costing tens of thousands of dollars as
fly-to-the-moon territory. We simply don't have the
money. We likely never will. Never mind something
catastrophic.
According to some, we simply must
work harder and pay more. But there's a problem: if
everyone is "rich," then no one is, right? It's like
everyone being above-average. For our culture to
work, there has to be a gap. Someone with a few
million earned won't sweat that transmission, that
operation, that kid's cough. Good for them. And the
rest of us? Isn't this a form of rationing? Nah.
It's the "Free" market in which we charge what it
will bear and let people die instead of caring.
I would go so far as to say there are
some extremists who believe that there are people
you see every day who don't deserve to live. They
haven't become "rich" enough, by their own fault,
lack of drive, or incorrect belief. They must be
punished for not having the right attitude.
Therefore they must hand over all their earnings for
the next ten years to pay for that car accident.
Does this seem fair? I do hear that
"life isn't fair," but, really, in situations like
this, isn't it really that we choose not to be fair.
We wake up every morning and accept that there are
people unworthy out there.
We treat people like things, and
things like people.
I can't help [but] think that what's
missing is that sanctity of life thing. Dignity,
too. Everyone deserves that.
Let's start from there.
Yeah, I know. Naive. Idealistic. But
we haven't really tried, have we? We've certainly
tried it the money way. How's that working for us?
Posted by: Rob | Sep 11, 2008 5:47:34 AM
Dear Editor:
So the bailouts continue in order to
avert a worldwide economic collapse. Bear Stearns-$29
billion; Fannie Mae-$100 billion; Freddie Mac-$100
billion; AIG-$85 billion and home mortgage bailouts up
to
$700 billion. All
financed by the American taxpayers. Over one trillion
dollars!
But the signs were there. Republicans
have been in the White House for 20 of the last 28
years. They have not produced a single balanced
budget. President Bush inherited a $236 billion
surplus and has turned it into annual $400 billion
record deficits. The national debt has gone up $4
trillion on his watch.
But what did you expect with the
Republicans continually giving tax breaks and credits to
the wealthiest Americans and corporations (aka: Bush's
base), payback for all those large campaign
contributions and lobbying fees? As long as the rich
kept getting richer and the GOP remained in
power, they did not seem to take the deficits or
spending seriously. Now it has all hit the fan and the
Republicans should be running for cover.
The worst economic crisis since the Great
Depression -- brought to you by the Republican Party.
Thank you President Bush! To paraphrase the Who, "
Don't get fooled again." Please, for the sake of the
nation, vote for Obama-Biden on November 4.
Tim Daley
Union Grove, WI 53182
Got work?
Since December 2006, the number of job seekers per job
opening available has skyrocketed more than 60%. The
number of job seekers per job opening is now firmly in
recessionary territory--at a higher level than during
any month of the official 2001 recession--and it shows
no signs of leveling off. This week's
Economic Snapshot and a companion Issue Brief look
at current job openings trends, an important counterpart
to the more commonly cited measures of unemployment.
The Prospering
Swedes
David
Cay Johnston….
“…. why
is it that countries with very high taxes are also
simultaneously very prosperous, in fact by the standards
that matter, more prosperous by far than the United
States?”
http://taxprof.typepad.com/taxprof_blog/files/120TN1085.pdf
The Power of Oil
Consumers
By Henry
A. Kissinger and Martin Feldstein
The
tripling in the price of oil from $30 a barrel in 2001
to around $100 today represents the largest transfer of
wealth in human history. The 13
OPEC members
alone are expected to earn more than $1 trillion this
year from oil sales. Inevitably, this will bring with it
major political consequences. Not the least significant
aspect of this political and economic earthquake is that
it is being exacted upon the world's most powerful
nations by some of the world's weakest. Yet the victims
stand by impotently as if the price of oil were some
natural event determined by a competitive economic
market that is not and cannot be influenced by political
forces.
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/17/AR2008091702969.html
|