Free Republic

How in hell did we get where we are right now? Lots of people are asking themselves that question as the greatest nation in the history of the world teeters on the precipice. The precipice of what? The precipice of a nightmare of collectivism and government control of our lives. I thought it might be useful to look at how Obama and the hate-America left are accomplishing what they really want more than anything- the comeuppance of America.

Everybody Else Did It Chris Dodd's mortgage blame game. The late Senator Russell Long used to say that the core truth of tax policy was "Don't tax you, don't tax me, tax the fellow behind the tree." Substitute political blame for the financial meltdown for taxes, and you will understand what Senator Chris Dodd is attempting today with his Banking Committee hearing on the causes of the panic. APIn February 2004, while Republican colleagues warned of the systemic risks posed by Fannie Mae and Freddie Mac, Mr. Dodd pronounced the mortgage market "one of the great success stories of all...

Fannie and Freddie's New Derivatives Cliffhanger The bailout triggers settlement of $1.4 trillion in unregulated credit-default swaps. Do the hedge funds have the money? by Ben Levisohn In taking over Fannie Mae (FNM) and Freddie Mac (FRE), Henry M. Paulson Jr. and the U.S. Treasury Dept. cleared up uncertainty surrounding the companies' common stock, preferred shares, and senior and subordinated debt. But Uncle Sam's intervention also triggered a default event, according to the International Swaps & Derivatives Assn., and now roughly $1.4 trillion in outstanding credit-default swaps, a type of derivative contract, must be settled. You remember the credit-default swap...

Fannie Mae's stock price has been on an upswing since late summer, reflecting investor confidence that a Democratic Congress would make strict scrutiny of the mortgage giant less likely (see the nearby chart). And there's no doubt that with Barney Frank wielding the gavel in the House Financial Services Committee, Fannie Mae and Freddie Mac will have a pal on Capitol Hill. Mr. Frank is already talking about expanding the companies' operations (and thus taxpayer exposure to any financial accident). Fortunately, James Lockhart is still running the Office of Federal Housing Enterprise Oversight, or Ofheo, and he's shown no appetite...