Response to Joe Light’s 01/27/2015 WSJ Article

Reposting from TH717 from blogger “Anonymous”:

“From YMB today My Response to Joe Light’s WSJ Article
Mr. Light,

I am as conservative as it gets. I believe in less government, lower taxes, social conservatism, and on. I disagree that liberals only have been pushing for FNMA’s recapitalization. I support this, because I believe that Fannie Mae performs an important function in the affordability of homes.

Even if one believes that FNMA and Freddie Mac are agents of the government (and I get that argument), I cannot believe that conservative politicians and writers are not demanding the release of the GSEs from GOVT control. Since when do conservatives believe that a publicly owned company can be held in perpetual conservatorship and that the profits of the company can go to the GOVT via the Treasury? The company is healthy and should be released from conservatorship. The Takings clause of the US Constitution should not be violated via the sweep. Even the FHFA states in their arguments that the GSEs are publicly traded companies. Do you want other publicly traded companies to be taken over by the GOVT and their profits seized? Now, you would argue that the companies were in need of the bailout. Yet, authors have argued well that the companies were NOT in distress at the time of the bailout. Also, the argument that the companies were doing wrong and were corrupt vice the banks is not even arguable, since the banks that sold their loans to FNMA are now paying MILLIONS of dollars back to the GSEs due to federal lawsuits.

Frankly, I find the silence of conservative politicians and writers appalling. To let a company stay in the control of the government just because one believes that their release will continue their existence instead of fighting for their release and then working to support and build up a strong private mortgage industry is anti-business and anti-conservative.

I am a shareholder of FNMA and I am conservative. I believe in the value of the GSEs and I believe that government takeover of companies is wrong and that the Taking of a company’s profits to benefit the government is wrong.

I wish you well.




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