When President Obama took office, he instructed Fannie Mae and Freddie Mac to begin buying up foreclosed homes. According to Stimulus Package Details, Fannie received another $200 billion influx of cash from the Stimulus Package.According to Reuters, Fannie received an additional $8.5 billion to continue snatching up foreclosures in May of 2010. At the time, I predicted that President Obama’s end game was to turn all of the assets owned by Fannie & Freddie into Government Housing.This past August, Hot Air.com chronicled details of the faltering mortgage giant receiving another $5.1 billion cash infusion from the Obama administration. Furthermore, the Associated Press reported that the Obama administration quietly announced that it was planning to turn the estimated 250,000 foreclosed homes that have been purchased by Fannie Mae and Freddie Mac into Government Rental Housing.Fox News recently published an article detailing the Administration’s plans to implement a further $85 billion “instant stimulus” to nationalize Fannie and Freddie once and for all. Even the ultra-liberal website Mother Jones thinks the President’s plan is foolish. Kevin Drum who penned the article believes the president’s plan is bad because it will cause the taxpayers to loose even more money than they already have on the two failed mortgage giants.Thus far, Fannie Mae and Freddie Mac have received over $382 billion in taxpayer assistance and have not repaid a cent (almost 40% of all Federal Stimulus if you were wondering). When added to the $6.1 trillion in mostly subprime mortgages that it already owns, the Federal Government could become the owner of more than half the homes in America. In one fell swoop, President Obama could effectively nationalize the housing industry, making the Federal Government the largest landlord in the world, and completing the largest redistribution of wealth in history.Foreclosing a home and allowing the current owner to rent at below-market rates would create another huge class of people receiving government benefits.
With the expansion in food stamps, Obamacare and so forth the goal of the Left is clearly to get as large a percentage of the American people beholden to the government as possible as a preparatory step to fundamental change.9
Obama’s plan for the federales to take formal ownership of what are currently just pledges against mortgages will reduce the tax base.
In its quest to promote taxpayer-funded entitlement programs, the Obama Administration has actually rewarded one state with a $5 million bonus for its efficiency in adding food-stamp recipients to already bulging rolls.