Nov 14th - Political Commentary - MSM at it again

This morning I picked up a Jeff City paper and was looking through it while eating breakfast. It took virtually no time to pick up the pro-Obama tilt. "In a rare tangible achievement from the annual Asian-Pacific Economic Cooperation summit, President Barack Obama, said Saturday he was optimistic that work on the American-backed trade pact, dubbed the Trans-Pacific Partnership with the U.S. and eight other countries, could result in a legal framework by next year." I saw nothing in the remainder of the article that sounded positive. China is described as being "unenthusiastic" about the pact. The article says that after 10 years of "costly and so far unfruitful talks" the World Trade Organization can't get anything done because of "unbridgeable differences between the United States and major developing countries such as India, China and Brazil". Had Bush made such a baseless comment the press would have justifiably torn him apart; Obama gets a pass from them.

Another interesting Obama comment was his knocking China for their "favoritism toward state-run enterprises." Obama wants the State to take control of everything and he is knocking the Chinese for being further along that path of being a totalitarian state.

Do the State run mortgage giants Fannie Mae, Freddie Mac, FHA, etc cause anyone to believe anything other than that the Feds plan on taking over the entire mortgage industry, if not the entire economy?

In 2010 the FHA insured/guaranteed 40% of ALL mortgages. In 2006 the figure was only 4.5%. In 2006 we taxpayers, through FHA, guaranteed $70 billion worth of home purchase mortgages, in 2010 we are on the hook for $319 billion. Nearly 1 in 10 FHA backed mortgages are in trouble. The foreclosure rate of FHA mortgages is over 10 times higher than it was in the 50's.

FHA has insured so many bad mortgages that they are about to run out of money. Congress requires that they must maintain a cash reserve equal to a minimum of 2% of the amount they have guaranteed. As with any government run institution rules are used only to make points with taxpayers, not to be enforced if they become inconvenient. Currently the FHA only has reserves of around 0.5% of guaranteed mortgages. Instead of Congress stopping them from guaranteeing more and more mortgages they are allowing the FHA to run wild.