Last Call For The Return Of House Of Pain

The Trump regime is about to finish off the economy by starting another housing crisis through turning Fannie Mae and Freddie Mac mortgages over to the big mortgage banks, and that will blow a hole in the side of the housing market almost overnight.

The Trump administration released a sweeping plan Thursday that could remake the U.S. housing market, starting with ending more than a decade of government control of two massive companies, Fannie Mae and Freddie Mac, that back half of the nation’s mortgages. 

The long-awaited plan from the Treasury Department features nearly 50 proposals, including many technical changes to financial regulations, and is aimed at shrinking the government’s role in the housing market. The cornerstone of the plan would resolve the fates of Fannie Mae and Freddie Mac, which 11 years ago this week were put into government conservatorship during the global financial crisis.

The proposals will “protect taxpayers and help Americans who want to buy a home,” Treasury Secretary Steven Mnuchin said in a statement. “An effective and efficient federal housing finance system will also meaningfully contribute to the continued economic growth under this administration.” 

Fannie Mae and Freddie Mac play a critical part in the housing market, buying mortgages from lenders, then packaging them into securities to sell to investors. The government seized control of both companies in 2008 as the housing market unraveled and the firms’ losses piled up.

The housing giants back half of the United States’ mortgages, and housing experts have warned that allowing them too much freedom again could lead to higher mortgage costs for consumers while enriching Wall Street investors.

“President Trump’s housing plan will make mortgages more expensive and harder to get. I’m urging the president: Make it easier for working people to buy or rent their homes, not harder,” said Sen. Sherrod Brown (D-Ohio), the ranking Democrat on the Senate Banking Committee.

Eventually the two companies do have to come out of conservatorship.  But if you think the Trump regime is going to correctly unwind Fannie and Freddie without causing another housing crisis, I don't know what to do.

Buckle up, folks.  If this doesn't get stopped, the economy is 100% sunk.