Following is an eye opener. What other industries are on the line for government takeover?
If you watched with alarm as the government took over General Motors and Chrysler, and as Democrats tried to increase government's role in the health care industry, you should be scared to death by Barofsky's discussion of the mortgage markets.
The unspoken, bottom line: The federal government has already nationalized the housing industry. We're not just talking about Uncle Sam providing a few subsidies, or even taking over a few of the big players, as they have in the auto industry. This is a complete takeover. Every new mortgage today is a government mortgage.
Over the last two years, government mortgage and mortgage-backed holdings have grown on net by nearly $1 trillion. Private investors and institutions have shed more than $1.5 trillion -- through foreclosure losses, pay downs, and by selling to government.
The effective result is a government-run housing market. Barofsky reports that right now, the government is responsible for about 100 percent of all new mortgage activity. You read that correctly. To put it in his own words:
"According to Federal Reserve net borrowings data, the federal government and the organizations it backs now guarantee or issue almost all net new borrowings for mortgages and MBS."
Read more at the Washington Examiner: http://www.washingtonexaminer.com/opinion/columns/Barofsky_s-warning_-We_re-all-on-welfare-now-83961147.html#ixzz0flexsxmi
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