Fannie Mae and DC Corruption

Democracy and Power 114:  The Power Players

 Who actually controls the force of government?   The politicians and interest groups control the American political process.  The politician seeks power.  Special interest groups – big business, big unions, education, seniors, and a multitude of others – seek favors: tax breaks, subsidies, exclusive legislation, etc.  Interest groups give enormous money to political campaigns, and receive gigantic benefits in return.


Fannie Mae and DC Corruption

Gretchen Morgenson and Joshua Rosner of the New York Times have written “Reckless Endangerment” exposing corruption between special-interest predators and DC politicians. 

Recently, David Brooks reviewed the book and, according to “Reckless Endangerment,” Fannie Mae was created and protected by the Federal government.  With Federal privileges and guarantees, Fannie  Mae’s expanded loans made enormous profits.  From the profits, the executives paid themselves lavish bonuses and bought political support.  As Brooks reveals, Fannie Mae consolidated their power just like other special interest groups:

Fannie Mae co-opted relevant activist groups, handing out money to Acorn, the Congressional Black Caucus, the Congressional Hispanic Caucus and other groups that it might need on its side.…

Fannie lavished campaign contributions on members of Congress. Time and again experts would go before some Congressional committee to warn that Fannie was lowering borrowing standards and posing an enormous risk to taxpayers. Phalanxes of congressmen would be mobilized to bludgeon the experts and kill unfriendly legislation.

Destructively, Fannie Mae, Congress and the special-interest predators were the major cause of the America’s financial crisis.  What haunts Brooks is the devastation is caused by the “normal” political process in DC.   The despicable collusion between predators and Members of Congress.

Washington is home to a vertiginous tangle of industry associations, activist groups, think tanks and communications shops. These forces have overwhelmed the government that was originally conceived by the founders.

Of course this collusion is exactly what the Tea Party activist and the independent voter has sensed – DC is corrupt.

Brooks does not refer to the Tea Party or independent voter, but fears a populist rebellion.  And implies the rulers had better reform or the hoi polloi might wreck havoc on them and the country.

No, a peaceful rebellion continues.  In 2008, Americans voted for Obama…in hopes of seeking change.  Instead of change, America got Chicago gangsterism.  Thus, the independent voter is disillusioned at the corruption and coercion used to pass ObamaCare and the crony collusion between big banks and Congress resulting in the Dodd-Frank.

Hence, in 2010 the Tea Party-activist and the independent citizen voted against DC corruption. However, electing new Members of Congress is not sufficient and the citizens are demanding Constitutional restraints, i.e., a balance budget amendment restricting spending to 18 percent. 

Only because the citizens are outraged are spending cuts and a balanced budget amendment considered by the politicians.  We the People must continue the peaceful rebellion. 

The 2012 election will be extremely important.  Our freedom and the freedom of the world depend upon the American voters.  Only an informed and voting electorate can save democracy from these ever present predators.