Fannie and Freddie to End Philanthropy

After requiring hundreds of billions of dollars in 2008 – 2010, why do Fannie Mae and Freddie Mac have philanthropy programs at all? The WaPo reports that those program may come to an end in the next few years. It’s about time. The problem is not with charity or the laudable aims of the programs Fannie and Freddie have been generously funding. The problem is with the continued reckless spending of the two GSEs whose daily activities – philanthropy, lobbying, political activism – have so far strayed from their original charters. Leave aside their faulty accounting and their conflicts of interest. Leave aside their negligent practices and irresponsible executive compensation. Just look at their current bottom lines. If the federal government were the least bit committed to preventing another housing bubble and to truly reining in both needless government spending and the prevailing Washington attitude that seeks to do everything for everyone, then they could start by liquidating Fannie and Freddie and starting to clear the housing market. Instead, we debate on whether or not a GSE with no money should continue to give away money that they don’t have. It is unfortunate for the laudable charities that they have supported, but those charities have been fed far too many free lunches over the years. It needs to end.


Leave a comment

Filed under Domestic Politics, Role of Government

Share Your Thoughts

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s