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On this episode.
It's been five years since the bottom fell out of the housing market.
An -- the government took good control of Fannie and Freddie remember the disaster is mortgage plans -- to this day the bailout has cost taxpayers a total of 131 billion dollars.
And the -- it.
And the feds back -- -- 90% of the -- mortgages.
In this country still with our nation's sixteen Chilean -- is it time to finally privatize Fannie and Freddie get -- off our backs -- we can't afford to sustain them.
Joining us right now as Leslie -- of Citizens Against Government Waste.
Leslie first off that hole Fannie Freddie took on our economy put that in perspective in 2008.
What kind of think government your crazy aunt -- an uncle Freddie you know they -- a lot of really bad investments they lost their shirts.
You know you took command temporarily so they can get back on their feet.
And they sit on your couch sheet and ships watching your flat panel TV -- they're not going anywhere.
They're costing us hundreds of billions of dollars in -- the CBO actually thinks that could end up costing us over 300 billion when all's said and done so direct injection of -- is -- cash to sustain them.
Now the treasury owns their stock we owned stock in that that's what we own preferred stock in -- in their in their business.
So that's how we've got him and we we we have no plan whatsoever not -- the White House or congress has put forth a plan to unwind this there's just absolute silence.
Emanating from from all of our leadership here in Washington in terms of what to do.
Still wet hair they would do -- risk taken over that mortgage market and what is -- risk if we don't find a way to solve this problem that privatize both.
Well we have actually nationalize our mortgage market there is no private capital that will come in now with Fanny and Freddie.
Have dominated this market so we've got to figure out a way to unwind these guys -- it's a huge risk for taxpayers Stillman a mortgage market is just barely started stabilize -- I'm sure -- this -- correspondents are telling us they're just starting to see some signs now stabilization.
But the fact of the matter is.
We need to get the government out of this space and bring private capital back -- because there's actually no reason why the government have to be the only one back stopping.
Still what is wrong with the model why is it different than the private sector if I open up from Georgia company or if I want to tip for a prayer of the division of Citibank.
Well for example this with the government sponsored enterprise OK now it's fully explicitly.
Under conservative ship of the federal government we cannot allow it to go back out into the market in its current form because it is basically.
You know it's got all these special privileges that are in ensconced in law.
If you want to change that you're gonna have to do some legislative hard work heavy lifting to get that changed.
So basically what they were doing was they were cleaning all the profits but they are putting all -- -- risky behavior the risk was going on to taxpayers and we saw how that -- it.
It's a disaster.
So we can't allow them these entities to go back into the market in their current form.
A consensus needs to start to grow.
And it is growing that they cannot.
This business model cannot be allowed to go back into the you know out there doing the same he was doing before it was a bad business model.
It had -- you know but it was a private sector company more -- -- for the public mission which allowed the taxpayers.
To be put -- high risk.
And politicians to manipulate these companies.
On housing policy.
And that is not a good model for the private sector absolutely -- -- causes so over 300 billion dollars in -- what are -- -- -- it.
Absolutely and nothing gonna -- Leslie thanks so much.
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