Tag: Office of Management and Budget

Funny how the left wants “less democracy” when they are in power, huh?

Peter Orszag, one of those evil Wall Street types – he is Vice Chairman of Citigroup, one of the left’s biggest money bag operations -that once was the 37th director of the Office of Management and Budget, under President Barack Obama, has an article out in the New Republic where he is lamenting the evils of democracy, and all out pining for the bureaucratic aristocracy class to simply ignore the process and do what they feel is best. Here are his words:

So what to do? To solve the serious problems facing our country, we need to minimize the harm from legislative inertia by relying more on automatic policies and depoliticized commissions for certain policy decisions. In other words, radical as it sounds, we need to counter the gridlock of our political institutions by making them a bit less democratic.

Frankly, one of the things I like the most is gridlock. Whenever DC can’t agree on anything “We the people” are spared all sorts of horribly stupid, disastrously costly, massively freedom robbing, and oft time outright evil legislation – always cloaked with the mantle of that shafting being “well meaning”, “socially just”, or to protect some victimized group – from them. It is absolutely a rare occasion when these fools pass anything of real value for us the people.

I frankly wish we had had a lot more gridlock when these crooks rammed Obamacare down our throats, in a purely and partisan vote that had necessitated hundreds of billions in graft money, paid for by the US tax payer, to buy the necessary votes from members in their own party preceding it, followed by massive favoritism in the form of special exclusions for the big donors that then tried to avoid the disastrous government takeover of healthcare this bill was designed to bring forth. And let’s not forget the blatantly obvious bullshit that the OMB did when Orszag was there to pretend Obamacare would somehow actually reduce the cost of this massive entitlement. American tax payers are in dire straights already, but wait until this fisting rolls us over. I bet even democrats will wish they had failed to pass this shit sandwich.

And I remind you that it was gridlock that prevented the democrat controlled congress from doubling down on the stupid with “Cap & Tax”. Of course, people that feel like Orszag that democracy for the stupid little serfs is such a problem in getting things done and that our aristocratic political class should simply “do by committee what they feel is in the best interest of the country” – that’s in quotes to point out it is as a snark, because what they are really doing is what is in their best interests, first, second, third, anything in between, and even last – are now implementing what they found to politically unsound and costly to do in the legislature, to avoid the wrath of the US voter, by just such a committee at the EPA. And we all know how destructive it will be to our economy.

More important however is the way the left feels about this idea when the other side has power. If they really believed this whole “rule by committee instead of democracy” pap Orszag is now selling us, wouldn’t they be for it when the other side was in power too? History kind of shows us that’s absolutely and undoubtedly not the case. Remember the gyrations Bush went through to get anything? Yeah, I know the left now pretends these things never happened, but those of us that paid attention or do not suffer from the self induced amnesia the left suffers from when it comes to facts & truth, know better.

Beware these crooks. In the name of doing more for us they are yet again trying to fool us into giving up another set of freedoms and a key vehicle to prevent them from doing far greater harm than they have already inflicted on us, in a much faster timeframe, so they can rake us over the coals even harder. Do not worry much about Wall Street: fear the fucking government that tells you it wants to just steamroll its agenda even when it holds the majority of the engines of power but can not get its will done because the fucking peasants won’t shut up and let their betters do what will save the political class’ collective hide at the expense of the serfs. Fuck em all.

Things are far worse than they seem..

Yeah, that’s my new special post category, in honor of CM, which try as he might, seems to only use vague and generalized personal attacks to dispute my points, and makes the case that I am exaggerating how bad things are. Well, in honor of that I have this juicy revelation for today:

(CNSNews.com) – The Congressional Budget Office (CBO) says the real cost of the federal government guaranteeing the business of failed mortgage giants Fannie Mae and Freddie Mac is $317 billion — not the $130 billion normally claimed by the Obama administration.

That’s more than double the real risk/cost that they told us was involved here. Remember that Fannie Mae and Freddie Mac where the key instruments of the idiotic policy that forced lenders to give loans to bad risk, then guaranteed those risk at the tax payer’s expense, and pushed for the regulations to create the disastrous credit swap scheme. Neither organization, nor their role in causing this recession, was addressed by all the new regulation passed by Barney Frank and Chris Dodd, two of the key players behind the policies that allowed the shenanigans to go on. We already poured millions into these two to bail them out, and we might not be done at all, since Bloomberg predicted that the actual bailout amount for this disaster might even top a trillion dollars back when: a number I wouldn’t be surprised ends up being the low end. But back to the article in question.

In a report delivered to the House Budget Committee on June 2, the CBO said a “fair value” accounting of guaranteeing the two defunct mortgage companies – known as Government Sponsored Enterprises (GSEs) – was more than twice as high as the Office of Management and Budget had accounted for.

“Specifically, CBO treats the mortgages guaranteed each year by the two GSEs as new guarantee obligations of the federal government,” the CBO report said. “For those guarantees, CBO’s projections of budget outlays equal the estimated federal subsidies inherent in the commitments at the time they are made.”

“In contrast, the Administration’s Office of Management and Budget continues to treat Fannie Mae and Freddie Mac as nongovernmental entities for budgetary purposes, and thus outside the budget,” the report stated. “It records as outlays the amount of the net cash payments provided by the Treasury to the GSEs.”

The total of those cash payments is $130 billion, and is normally reported as the cost of the bailout of the GSEs to date. However, the CBO said that merely counting the cash payments, and not the cost of federal subsidies granted to the GSEs, obscures their real costs. Essentially, the CBO is accounting for the cost of the federal government guaranteeing the loans bought and securitized by the GSEs.

What this says in short is that the Keynesians have purposefully underestimated the debt they have straddled us tax payers with, because while they claim Freddie & Fannie are non governmental agencies, we the tax payers still are on the hook for their risk taking ventures, which I must again stress, remain untouched and ongoing. But don’t take my word for it: here is the CNS article:

Currently, Fannie and Freddie rely on explicit federal guarantees to continue to secure below-market financing rates. Because Fannie and Freddie are insolvent, the federal government must make up their losses when the loans they have guaranteed lose money in default.

However, the CBO counts not only the amount of federal funds spent to keep the GSEs operating but the cost to the federal government to subsidize the mortgage guarantees issued by Fannie and Freddie. In other words, the CBO counts as a federal spending commitment the subsidy given by the government to the GSEs.

And the CBO has to count that in, because our government, well we the tax payers, are responsible for those risky loans. And it gets better:

However, this subsidy cost could grow if the housing market continues to be weak. While the CBO expects it to recover, the difference between the agency’s own 2009 and 2011 estimates show that this may not be the case.

We haven’t heard the true numbers yet. Me, I wouldn’t e surprised that in the end it is closer to a trillion dollars of risky loans that will need to be written off and paid for by the tax payers, because in my personal experience the number of people that never should have been given a loan far surpasses those of us that didn’t buy more than we could afford, or worse, promptly took out 125% or more of the value of the homes they owned out to do other frivolous things.

Don’t worry though: Freddie & Fannie are in good hands. And don’t forget that we the tax payers are paying for the lawsuit by the government against the Freddie & Fannie execs too. Joy! All hail the Keynesians! Things aren’t all that bad….