In the last six weeks alone, the Obama administration has essentially transformed Fannie Mae and Freddie Mac into arms of the federal government. Regulators have ordered the companies to oversee a vast new mortgage modification program, to buy greater numbers of loans, to refinance millions of at-risk homeowners and to loosen internal policies so they can work with more questionable borrowers
US Likely to Keep the Reins on Fannie and Freddie By Charles Duhigg March 2 2009
None of this can be a surprise to anyone who has read Steve’s book. As I noted in Does Obama know any Economics? there is a revealing passage in the Obama autobiography/self-celebration about his time at Occidental College, which Steve quotes:
To avoid being mistaken for a sellout, I chose my friends carefully. The more politically active black students. The foreign students. The Chicanos. The Marxist professors…At night, in the dorms, we discussed neocolonialism, Franz Fanon, Eurocentrism, and patriarchy
What kind of man wanted to hang out with Marxist professors in the final year of the Carter Administration?
The Stock Market has broken down out of a sideways pattern since Obama’s inauguration - to multi year lows. It must have read America’s Half Blood Prince!
Essential reading for the Obama era!