Monday, November 14, 2011

Once More with Feeling: Fannie Mae Gets Another $7.8 Billion from the U.S. Treasury

Back in the old days before the housing crisis, bonds issued by Fannie Mae were considered almost risk-free. This was because, it was thought, while the company was a private entity, it was backed up by the full faith and credit of the U.S. government. Were those investors right! Fannie Mae, just got another $7.8 billion infusion. That brings the total Fannie bailout to $112.6 billion so far, with no end in sight in the near future. 

This is the sort of crony capitalism that the Occupy Wall Street movement is justified in protesting against. When one considers the examples from God's people such as Job, Abraham, and Solomon, it is clear that there is nothing evil about prosperity per se. Getting rich by ripping people off, is another matter. As James says,
Come now, you rich, weep and howl for the miseries that are coming upon you. Your riches have rotted and your garments are moth-eaten. Your gold and silver have corroded, and their corrosion will be evidence against you and will eat your flesh like fire. You have laid up treasure in the last days. Behold, the wages of the laborers who mowed your fields, which you kept back by fraud, are crying out against you, and the cries of the harvesters have reached the ears of the Lord of hosts. You have lived on the earth in luxury and in self-indulgence. You have fattened your hearts in a day of slaughter. You have condemned and imurdered jthe righteous person. He does not resist you (James 5:1-6).

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