i mean, it isn't the government actually giving money to fannie mae, is it? >> fannie and freddie were given a lower... a lower borrowing rate in the markets by investors who always assumed that they were government-guaranteed. >> reporter: lower borrowing rates because those investors who lent fannie money to buy mortgages believed, if it couldn't pay them back, the government would. and in fact, the government did after fannie's failure in 2008. those lower rates amounted to a $6 billion subsidy, say the authors, much of which went toward enriching fannie mae's shareholders and executives, and lobbying against constraints. >> they generally squelched oversight with all... always with the same tactic. you get the realtors, you get the homebuilders, you get community groups, you get community activists to say, if fannie and freddie are constrained, it will have a negative impact on homeownership rates. >> reporter: right across the street-- the james a. johnson housing and community development center, named for the man who, say the authors, built fannie's emp

fannie mae and freddie mac. i am impressed with the on- again, off-again nature of this with my colleagues on the house. my republican colleagues in the house talked tough about fannie mae and freddie mac when they were in the minority. when they are in the majority, something happened. they are affected by a strange kind of paralysis. last year when we dealt with this bill in conference, the republicans offered the hensarling bill, as amended. we said it was not germane. we it has been seven months into the session with republicans in the majority. arling is a member of the majority. said. what mr. bauchus we would like a comprehensive bill. can we get a comprehensive bill? i do not think so. republicans in power in the house are much less certain. where are we? i will say i am somewhat embarrassed by this failure of memory, once he became a member of the majority. the gentleman from alabama blamed the obama administration. i feel like humphrey bogart, when it comes to fannie mae and freddie mac, republicans ca

on the one hand you have fannie mae, freddie mac we call it godzilla.ve the banks we call king congress. we want the reader to envision they are looking at downtown tokyo look the at godzilla and king kong battling it out. you have to deal with both and the large institutions. >> jon: when godzilla and king kong are attacked in tokyo is there a regulatory alive that could zap them with a gamma ray? or how do you battle that type of -- it strikes me as, if we're backing them and backing the private mortgage insurers who are we not becoming and how could we as the american public have won in the first place. >> once you made them king÷ú kog and godzilla there's nothing you can do. you have to prevent them from becoming that. >> jon: do you have faith there can be an aggressive streamline, not cumbersome bureaucracy, regulatory regime that could control these things or is it politcally not feasible? >> i don't know about the politics. in the book we have a three-stage plan to get from where we are now to where we want to be. first we stop messing around an

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folks at the cbo, the congressional budget office, a wonderful venn yet where they came up against fannie mae1995 part of the congressional act in 1992, the safety and soundness act creating a new regulator for fannie and freddy, treasury, hud, and cbo. cbo did a masterful job of analyzing how rich the subsidy was from the government that fannie mae received. they were visited by fannie mae executives. june o'kneel, the head of cbo said they felt like they were visited by the mafia and pressured to try to water it down, not to produce this report that was very explicit about how much the government guarantee was worth to the company and how it all costs they had to protect it. we have cbo people standing up against the pressure from fannie mae. are other -- there are other people who saw what was coming. people in the georgia area, first to wave the flag and call out the rating agencies for inserting themselves in a process where jazz had the toughest predatory lending law in the country, but the ratings agencies walked in and said we will not rate any securities that contain georgia loans an

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he also said the obama admial bstration has started a process of, quote, winding down fannie mae and fre. thesme t mac. can you belme tve it? fannie and freddie's market shares increasing. they count for 70% of mortgage-backed securities. with other government pr.'rams inen uding the federal governmet now controls 97% of the market. housing reform has not begun. success will, quote, the panda and making sure we can write sensible rmic es to promote the health of the broader economy. nsible rules that will promote the broader economy. political connected unions and groups were among the biggest winners under dodd-frank. at contains an assortment of compensation requirements that harms shareholders by empowering special interests and encouraging short-term thinking by managers. 50 years ago president eisenhower admonish us all the president eisenhower admonish us all quote that guard against the acquisition of unwarranted influence by the defense industry in the pentagon. i am surprised that his words have gone unheeded in this context and the only thing dodd-frank has accomplished is c

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gay lovers as a financial analyst at fred -- fannie mae? as a libertarian i have no objection whatsoever to his sexual preferences. i have a serious objection to corruption. we're talking about a deeply, deeply corrupt man his corruption's very nearly destroy the world. another villain is alan greenspan. what character is alan greenspan light? anybody remember dr. robert sadler? kind of a minor character, but a very key character, one of two college professors it was a mentor to young john glat. wind john glat was still a young man he left academia to found the state science institute said that he could do his experiments in physics from a theoretical physics three of the privy support of capitalists and people who pay tuition and things like that. and john glat disowned him, he damn time. now, at the climax when the world finally totally goes down the drain the climactic scene is when the government's having a big star braided his work in physics to create a weapon of mass destruction, this weapon almost accidentally detonates. the descrip

fannie mae and freddie mac. i am impressed with the on- again, off-again nature of this with my colleagues on the house. my republican colleagues in the house talked tough about fannie mae and freddie mac when they were in the minority. when they are in the majority, something happened. they are affected by a strange kind of paralysis. last year when we dealt with this bill in conference, the republicans offered the hensarling bill, as amended. we said it was not germane. we it has been seven months into the session with republicans in the majority. arling is a member of the majority. said. what mr. bauchus we would like a comprehensive bill. can we get a comprehensive bill? i do not think so. republicans in power in the house are much less certain. where are we? i will say i am somewhat embarrassed by this failure of memory, once he became a member of the majority. the gentleman from alabama blamed the obama administration. i feel like humphrey bogart, when it comes to fannie mae and freddie mac, republicans ca

as a financial analyst at fannie mae. as a libertarian, i have no objection whatever to his preferences. i have a serious objection to corruption. we are talking about it deeply, deeply corrupt man whose corruption very nearly destroyed the world. another villain from atlas shrugged, alive and well in our world is alan greenspan. no wet character is alan greenspan might? anybody remember dr. robert stadler? a very key character. he is one of two college professors to the young john galt. when galt was still a young man, statler left academia to fund the state science institute. so he could do his experimental physics, theoretical physics for you to grab supportive capitalists of people who pay tuition and things like that. john galt disowned them. he damned him. now at the climax the world totally goes down the drain, the claim that extremism in the government, have been expropriated dr. statler cirque and physics to create a weapon of mass destruction, the weapon almost accidentally detonate the doctor staffers present i

there were some folks at the cbo, we have a wonderful vignette where they came up against fannie mae in 1995 when they were part of the congressional, part of the congress act in be '32 which was the safety and soundness act that created a new regulator for fannie and freddie asked for studies from treasury, gao, hud and cbo. cbo did a masterful job of analyzing how rich the subsidy was from the government that fannie mae received. um, they were visited by fannie mae executives, june o'neill who was the head of cbo at the time said she felt like they were being visited by the mafia. they were, she was pressured to try to water it down, not to produce this report that was very explicit about how much the government guarantee was worth to the company and how it all cost -- at all costs they had to protect it. so we have cbo people who were, you know, standing up against the pressure from fannie may. there are other people who saw what was coming, people in the, in the georgia area who were first to wave the flag and call out the rating agencies for, um, inserting themselves in if a proc

fannie mae and freddie mac. i am impressed with the on- again, off-again nature of this with my colleagues on the house. my republican colleagues in the house talked tough about fannie mae and freddie mac when they were in the minority. when they are in the majority, something happened. they are affected by a strange kind of paralysis. last year when we dealt with this bill in conference, the republicans offered the hensarling bill, as amended. we said it was not germane. we it has been seven months into the session with republicans in the majority. arling is a member of the majority. said. what mr. bauchus we would like a comprehensive bill. can we get a comprehensive bill? i do not think so. republicans in power in the house are much less certain. where are we? i will say i am somewhat embarrassed by this failure of memory, once he became a member of the majority. the gentleman from alabama blamed the obama administration. i feel like humphrey bogart, when it comes to fannie mae and freddie mac, republicans ca

because a year ago, the republicans knew exactly what to do about fannie mae and freddie mac. that was over a year ago. today we haven't even had a hearing. republicans knew exactly what to do about fannie mae and fred when they were in the minority. but getting in the majority has somehow muddled their minds. we now have four republican approaches to fannie mae and freddie mac. we have four separate bills. one has not had any hearing or action. gary miller's bill and john campbell eats bill. i think the committee has been pretty ineffective. >> right now, -- are you concerned they could make these bills law? >> no, because i don't think they are going to win the house, the senate and the presidency in 2012. you also would need the -- they would need to get the white house and i don't think so. plus i also believe they are more ready to do this, if this is again a case, they are not in the minority in the house but i think they are bluffing. i don't think they are ready to pass a law that says the cftc can't deal with speculation. i don't think they are ready to abolish the cf

fannie mae and freddie mac. >> start with freddie and fanny.ros its would be put on an auction block and sold to the highest bidder. minimum bid, 50 cents. >> but without fannie and freddie, bachmann couldn't have bought her 5200 square foot house on a minnesota golf course. washington post huff reports balk maen and her husband signed a $417,000 mortgage in 2008. backed by either fannie mae or freddie mac and they have steadily attacked freddie and fannie ever since. >> there is an assurance that this would be the back stop for feddy and fanny. that's part of the problem. we want to see freddie and fanny put on the auction block, divide up and sold off. >> this is not the first time bachmann tried to have it both ways when it comes for government spending. bachmann calls for cutting medicaid but her husband's counseling clinic has over $160,000 in medicaid funds and other government money. while bachmann says she wants it farm has gotten $260,000 in federal subcy dies. bachmann claims to hate government spend bug she is more than willing to ta

supporting loans backed by the government, fannie mae, freddy mac and fhan october, it will be reduced, leaving future home buyers ability to borrow only $625,000. researchers at george washington university school of business are suggesting the limits should be rolled back further. >> you'd need to have a jumbo loan. >> interest rate is higher but more difficult to qualify. because fewer lenders that are providing loans that have size. >> the concern is that reducing the limits, thousands of california home buyers will be shut out of homeownership unless they can come up with a higher down payment. >> people don't have it. incomes have dropped. experts say it could affect home values. >> we can see up and down the neighborhood. >> not everyone agrees, russell is a business owner. >> i don't think it's going to to have a huge affect. the area we're in prices are high enough. there aren't going to be that many thicks that can -- the bulk are already jumbo loan autos these limits have been help tofl counties. the sale of the average home for the first quarter of 2011 was $970,000. accord

fannie mae and freddie mac. i am impressed with the on- again, off-again nature of this with my colleagues on the house. my republican colleagues in the house talked tough about fannie mae and freddie mac when they were in the minority. when they are in the majority, something happened. they are affected by a strange kind of paralysis. last year when we dealt with this bill in conference, the republicans offered the hensarling bill, as amended. we said it was not germane. we it has been seven months into the session with republicans in the majority. arling is a member of the majority. said. what mr. bauchus we would like a comprehensive bill. can we get a comprehensive bill? i do not think so. republicans in power in the house are much less certain. where are we? i will say i am somewhat embarrassed by this failure of memory, once he became a member of the majority. the gentleman from alabama blamed the obama administration. i feel like humphrey bogart, when it comes to fannie mae and freddie mac, republicans ca

>> the federal national mortgage association, also known as fannie mae, and the federal home loan mortgagessociation, also known as freddie mac, were both created by the u.s. government. the two exist with the same purpose -- to increase homeownership by increasing the number of mortgages ised to u.s. homeowners. this is how they work. fannie and freddie buy mortgages from banks, and sell them to investors as securities. that frees up capital for banks to issue more mortgages, naturally, long-term fixed interest rate mortgages. but critics have fingered them with playing a major role in spurring the great recession. they say fannie and freddie sold shoddy mortgages to wall street. when those mortgages defaulted, so did the stock market, spurringthe cris. sosays former licy. if the u.s. government had not chosen this policy th, the great financial@crisis of would never have occurred." more fanniend freddie, we're talking about two institutions, and the average americancan't walk in there and take a mortgage. who is -- who do they dl with? >> theyeal withother fincial in institutions,@o in t

. $1 trillion of the $2 trillion alone at fannie mae and freddie mac.it you can create a deficit by absorbing all of the housing debt into the government add freddie mac and fannie mae, fund all of these wars, no restructuring and continue to subsidize a banking system that's exporting capital by the trillion from our country and then solve that deficit problem by cutting medicare? that, i'm confused by that. >> el well, dylan, i'm too confused. not someone standing here saying the solution is cut medicare. the proposal harry reid will put in detail tonight will come to the senate floor is going to achieve some real progress in part by spending reductions in the wars in afghanistan and iraq. i think you're right in pointing out that it is both dramatic increased spending on conflict overseas and significant tax breaks that led to our record deficits. the gap between our revenue and our spending. we ought to be focused more on growing revenue by growing jobs, and to do that we may have to do some spending that restores america's competitiveness. we've al

they gave ratings to fannie mae and freddie mac. >> very good point. >> they warn us about the disaster coming, no much? look at the free market economist to get the rating. >> that is like me offering dietary advice. >> get your sense was what happened august 2nd. to hear the president tell us we default. but technically that is not true. >> no, you pay your bills with the cash flow and pick and choose. you don't default on the debt. you might have to default on the agencies of government. but you could pay your social security and you could pay the necessary things that have to be done, but there is a lot of burrcrats that are not all that necessary . so there is a lot of -- you can could do. facing up to the facts that you have to deal with it and end up spending money and august 2nd is a fictitious day. they are billions over the debt already. and so, i think that august 2nd debt is more related to the individuals who have trips planned in august and want to clean up the mess . for that reason, if they don't come up with a agreement. they will have a temporary agreement that the pre

mortgage giants fannie mae and freddie mac, all aaa-rated insurers, and federal home loan banks. s&p characterized its targets as "entities with a direct link to, or reliance on, the federal government." >> susie: when it comes to the raising the debt limit, president obama says house republicans have to compromise. he wants them to add tax increases to large spending cuts as part of a balanced package, but house republicans are holding firm and some are refusing to vote for any debt limit increase. darren gersh spoke with one of them, georgia representative tom graves. darren began by asking graves whether there was anything the president could do to win his support for a $2 trillion deficit reduction package. >> the $2 trillion package, talking 'savings over 10, 12, 15 years, but our decrisis is today's problem, so we need today's solutions. so they're talking about long-term cuts, that's not what interests me nor the conservatives in the house of representatives. we want me cuts today, we want that in the short-term solution, then the midterm solution is caps. bring ourselves

is because we are subsidizing fannie mae and freddie mac and telling people to buy houses with no downayment. he has also been somebody who has been a little different than some republicans in that he believes our foreign policy should be constitutional. we should not go to war simply on the word of a president but you should have congressional debate and congressional authorization for war. that is what the constitution says. many in republican party are coming in his direction on this. the debate over libya really shows the influence of ron paul in the republican party. >> libya is supposed to be on the senate floor next week. you said you'd like to filibuster would it ever is on the floor to bring up the debt. does that mean you would filibuster a move to bring the libyan resolution to the floor? >> i have been one of the most vocal in the senate for debating libya and bring it to the floor. i wanted to bring it to the floor when it was still within the realm of law. the president had evaded the war and showed utter disdain for the constitution and congress. it is not good to tell t

the swiss bank is accused of misleading fannie mae and freddie mac into buying mortgage debt that resulted in more than $900 million in losses. the lawsuit by the federal housing finance agency alleges that when u.b.s. sold more than $4.5 billion in residential mortgage-backed securities, the bank made misstatements as to the quality of the underwriting. the kind of u.s. savings bonds many of us give as gifts are being phased out. tonight's "money file" explains the changes and what you can expect. here's karen gibbs, founder of the gibbs perspective. >> do you buy savings bonds for your children, grandchildren, nieces or nephews? well, starting january 1, 2012, you'll have to do it online. the treasury department hopes the digital move will save as much as $70 million over the next five years by eliminating printing, mailing and financial middleman costs. series ee bonds-- sold at a 50% discount-- and series i bonds-- sold at face value-- pay a fair return without risk, with no state and local taxes, while offering significant federal tax benefits if used for college tuition or other qual

. >> fannie mae and freddie mac mortgage giants will stay in existence but congress will reform them. bye-bye! o?7o7gg7ogw

housing bubble is going to get bigger and we're going to crash and it is because we are subsidizing fannie mae and freddie mac and telling people to buy houses with no down payment. he said it is coming. he has been a little different and some republicans in that he believes are foreign policy should be constitutional. you should not go to war simply on the word of the president. you should have congressional debate and congressional authorization for war. that is what the constitution has said. many in the republican party, including michele bachmann, are coming his direction on this. the debate on libya shows the influence of ron paul and the republican party. you have majorities or near majorities to say the president is wrong for going to war without congressional authority. >> speaking of libya, that is going to be on the senate floor next week. you said you would try to filibuster whatever is going to be on the floor to bring up the debt. does that mean you would filibuster and move to bring the libya legislation to the floor? >> i have been one of the most vocal in the senate about brin

crisis in the country and what led up to it and involved two local businesses, freddie mac and fannie mae. so i have -- i know lots of players. i'm curious to read and find out what happened there. and then there's some thing that is i want to go back and read. you know there was recently a controversy about huck finn. and the use of the n word. and there was a professor who took it out of the text. and this sparked a controversy about sanitizing american history or in the context of my own book, sort of politically correct speech code and how inappropriate it was given the fact that mark twain, samuel clemons wrote it with the power of that word intended. so i want to just take a look at what the sanitized, if you will, text looks like. i've picked up that book. again, that's sitting on my desk. and then there are -- there are two books. i'm trying to remember their names. it's such an opportunity to help out our authors that i'm reading. but one is a book by lawrence block who's a mystery writer. and i think it's called a drop of the hard stuff. it's a mystery novel. and lawrence block

crisis in the country and what led up to it that involves two local businesses, freddie mac and fannie mae. hi am curious to read and find out what happened. there are some things i want to go back and read. there was recently a controversy about huck finn and a professor who took the n word out of the text and this sparked a controversy about american history in the context of my own book, politically correct speech codes and how inappropriate it was given the fact mark twain and -- samuel clemens wrote it with the power of that word intended. i wanted to take a look at what the sanitized text looked like. i picked up that book and it is sitting on my desk. and then there are two books. i am trying to remember their names. and opportunity to help out authors i am reading. lawrence block is a mystery writer. i think it is called a drop of the hard stuff. it is a mystery novel. lawrence block is to me a terrific mystery writer. that is of the top of the my list. if i wasn't here i would read lawrence block. he is terrific. and george pellicano writes about mysteries in washington d.c.. has

now, the most you can borrow through fannie mae is $729,000 here in the bay area and other expensivemarkets. on october 1, that limit drops to $625,000. >> it's going to have an impact. and it's especially hitting the building industry, hit so hard. it doesn't really provide an opportunity to stall on a margin where builders need to sell at. >> some worry this will prevent thousands from buying homes and hamper recovery. >> facebook is launching a way to stay in touch with friends. and the palo alto social network is teeming up with video giant-chat giant skype. as david louie explains there is more to it than that. >> facebook wants to be your one stop place to share everything in your life with friends. and now, you can connect to them for video chats. >> you start the video. and there gou. it's connecting. and then, with them? there we go. >> facebook is partnering with skype to provide chats. skype expecting this will triple and quadruple amount of traffic it handles. current volume is 300 million minutes per month. skype working on a video chat feature. >> we're building our own

deficit that is contributed or rather this contributed by the wars in the blue below that tarp tarp fannie mae recovery and the large who actually is the economic downturn but the fact of the matter is that if we did away with the wars we could end the wars and if we did away with the bush tax cuts we'd have pretty much a balanced budget you know other than the recession we'd be on the way there so why is it that the gang of six is proposing to do something other than looking at what so obvious with this graphic and it's really fascinating if you look at the actual document that they put out about their sort of budget deal as they actually say social security has nothing to do with the deficit and then the next line they say oh we're going to alter it anyway and then they plan to make a number of changes of security which i don't think are very very good for the program and then they also lay out some steps in the future to take a container deal with the protesters just to you know take off the cap i think most americans don't realize that if you're in over one hundred sixty thousand dollars a