The federal government’s “footprint” in the housing market [excerpt from The GSE Report]

The GSE Report ^ | August 28, 2009

[gartrell bibberts]

The federal government’s “footprint” in the housing market

In a review of the 2010 budget, the federal government’s “footprint” in the housing market was broad and deep. In addition to the support provided by Fannie Mae, Freddie Mac, the Federal Home Loan Bank System and Farm Credit to the housing market, there were roughly 177 housing programs in the administration’s 2010 budget in more than 11 agencies, including the Federal Reserve (4 programs), Treasury Department (6), HUD (93), Department of Agriculture (46), Department of Defense (8), Department of Education (2), Department of Homeland Security (3), Department of Justice (1), Department of Labor (1), Department of State (3), Department of Veterans Affairs (6), and other agencies (related to the District of Columbia and Americans—4). In addition, the federal government grants tax incentives to encourage home ownership and ownership of rental properties.

...Neil Barofsky, the special inspector general overseeing TARP, cautioned lawmakers that the $700 billion TARP fund has morphed into an aggregate “gross” exposure for U.S. taxpayers of as much as $23.7 trillion through the government’s bailout efforts. The SIG-TARP’s estimates include programs offered by FDIC (up to $2.3 billion), TARP and other aid from Treasury ($7.4 billion), and federal funds for Fannie Mae, Freddie Mac, credit unions, Veterans Affairs, and other federal programs ($7.2 trillion). “TARP has evolved into a program of unprecedented scope, scale and complexity,” said Barofsky. He criticized Treasury for “repeatedly failing to adopt recommendations” needed to provide transparency and fulfill the administration’s goal to implement TARP “with the highest degree of accountability.” As a result, Barofsky cautioned lawmakers that fraud and misuse of bailout funds is inevitable and his investigators are gearing up for investigations of abuse.

[gartrell bibberts]

The GSE Report is a monthly journal, which tracks the role of the federal government and Congress in the financial crisis. Click on latest issue at link to obtain a PDF copy of the journal. Strong adult beverage recommended when you read this thing. This crisis is much worse that we've ever imagined. Sadly, the current administration strives on chaos to push their agenda through--and that we have PLENTY of....