On Christmas Eve, when most Americans were busy with other things, the US Treasury department announced that it was removing the $400 billion cap from what the Obama administration believes will be necessary to keep Fannie Mae and Freddie Mac solvent.  This action confirms that the decade-long congressional failure to more closely regulate these two government-sponsored enterprises [GSEs] will rank for US taxpayers as one of the worst policy disasters in our history. 

By the way, just in case you are not clear, we taxpayers have owned these two enterprises since September 2008 after they went bankrupt buying and securitizing residential mortgages.  US taxpayers will have to pay for every dime that the Treasury Department injects into them to keep them solvent.

Let us say thanks  to the Democrats and in particular Barney Frank [D-Massachusetts] for their resistance to increasing the federal oversight and control over these two businesses over the past decade.  Frank's now famous comment 'to roll the dice' on subsidized housing several years ago and to use Fannie Mae and Freddie Mac to this purpose is part and parcel of why these enterprises went bankrupt and will likely cost taxpayers hundreds of billions of dollars. 

One of my goals after being elected by you to the 8th District seat is to be appointed to the House Financial Services Committee and help draft the needed legislation to regulate our banking industry and to resolve the crisis of government [taxpayer] ownership of Fannie Mae and Freddie Mac.

Keep it coming Dems!