Investing

Fannie and Freddie Redux

 

A Housing Bubble

Remember the housing market meltdown and the financial crash of that a carried a huge recession into 2009? Blame Bush? Well, I blame all the political class who allowed this housing shell game exist and grow over the years.

Barack Obama is busy as ever with his Marxist minions working hard to bring more “affordable” housing to the people who can’t afford it, all the the backs of taxpayers which will eventually melt the markets once again.

With all the current attention on immigration and Obamacare few in the public are paying attention to any news on the behind the scenes market manipulation and law changes via agencies that will have an enormous negative effect on the economy.

Fannie Mae and Freddie Mac are the culprits, besides the political forces running this enterprise. There participation in “sub-prime” loans which defaulted are the primary reason markets folded like house of cards. Any new attempts at making loans coming out of FMFM may very well stall in the Senate or face the veto pen of Barack Obama. Taxpayers handed over $188 billion in 2008 to save Fannie and Freddie.

Some experts say another default may not be imminent until 2017 but this can be postponed or halted. Fannie, Freddie and other government agencies currently buy up 90% of mortgage loans. And now we may be facing another crisis as the companies’ regulator, the Federal Housing Finance Agency (FHFA), sparked a backlash last month when it announced that it would soon lower lending standards for mortgages by permitting smaller down payments.

It’s not just the politicians who wish to play with a poor system to make it worse but a coalition of affordable housing advocates, lenders, realtors, homebuilders, and sympathetic lawmakers. The group supported some of the government’s affordable housing goals that critics say lowered lending standards, and led to numerous mortgage defaults, before the 2008 downturn.

As long as Fannie and Freddie are not held to lending standards of banks and other mortgage companies the economy and financial markets will repeat the history of 2008-9. Pressure from outside groups and weak politicians don’t care about your future, only their own.

 

Be the first to comment - What do you think?
Posted by Don Anastas - November 17, 2014 at 10:30 am

Categories: Business, Economics, Investing, Politics   Tags: , ,

Obama’s Tax Increases

m4s0n501

Obama's Tax Increase

Maybe you haven’t noticed how prices keep going up on things you buy at the grocery store or on other goods purchased elsewhere.

Oh that pesky Barack Obama and his regime have been very busy avoiding the purse strings and Constitution bypassing the House of Representatives and still managing to put the hurt on your pocketbook.

In fact, the Obama administration has managed 13 tax increases to the tune of $3 Trillion.

If you take time to watch the short video below you’ll see how subtle your taxes go up until you begin to notice it’s not just your paycheck, it’s about how you live and breathe.

Just in your day-to-day living things are costing you more, many times when you’re not prepared for a break to your personal budget.

 

Here’s the skinny from Heritage.org:

13 Tax Increases That Started January 1, 2013

Tax increases the fiscal cliff deal allowed:

1. Payroll Tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.”

2. Top marginal tax rate: increase from 35 percent to 39.6 percent for taxable incomes over $450,000 ($400,000 for single filers).

3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers).

4. Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers).

5. Tax rates on investment: increase in the rate on dividends and capital gains from 15 percent to 20 percent for taxable incomes over $450,000 ($400,000 for single filers).

6. Death tax: increase in the rate (on estates larger than $5 million) from 35 percent to 40 percent.

7. Taxes on business investment: expiration of full expensing—the immediate deduction of capital purchases by businesses.

Obamacare tax increases that took effect:

8. Another investment tax increase: 3.8 percent surtax on investment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles).

9. Another payroll tax hike: 0.9 percent increase in the Hospital Insurance portion of the payroll tax for incomes over $250,000 ($200,000 for single filers).

10. Medical device tax: 2.3 percent excise tax paid by medical device manufacturers and importers on all their sales.

11. Reducing the income tax deduction for individuals’ medical expenses.

12. Elimination of the corporate income tax deduction for expenses related to the Medicare Part D subsidy.

13. Limitation of the corporate income tax deduction for compensation that health insurance companies pay to their executives.

While Barack Obama looks the American public straight in the eye, via his teleprompter, he lied to all of us over and over and over again. But we know that Barack Obama demanded these changes, these regulations set by his agencies that would raise taxes on everyone paying taxes or spending money in some way.

The United States has a $17 Trillion budget crisis and Barack Obama has caused every American to have their own personal budget crisis, one nearly impossible to manage.

Be the first to comment - What do you think?
Posted by Don Anastas - October 30, 2013 at 1:07 pm

Categories: Govt. Regulation, Health Care, Investing, Politics, Taxes, U.S. Constitution   Tags: ,

What Economic Recovery? It’s A Recession Stupid!

Things just keep getting worse for the American worker, and by implication US economy, where as we have shown many times before, it pays just as well to sit back and collect disability and various welfare and entitlement checks, than to work.

The best manifestation of this: the number of people not in the labor force which in March soared by a massive 663,000 to a record 90 million Americans who are no longer even looking for work. This was the biggest monthly increase in people dropping out of the labor force since January 2012, when the BLS did its census recast of the labor numbers.

And even worse, the labor force participation rate plunged from an already abysmal 63.5% to 63.3% – the lowest since 1979! But at least it helped with the now painfully grotesque propaganda that the US unemployment rate is “improving.”

People not in labor force:

Current Labor Force

Labor participation rate:

Current Labor Force

Liberally Conservative appreciates your comments that abide by our guidelines:

Be the first to comment - What do you think?
Posted by Don Anastas - April 5, 2013 at 11:41 am

Categories: Business, Economics, Govt. Regulation, Investing, Labor, Politics, Retirement, Social Security   Tags: , , ,

Next Page »