Saturday, January 16, 2010

$28Bn Spent, No Vote, No Discussion

Subsidizing the housing/real estate industries.

Fannie and Freddie are going to be the new bankers for HFA (Housing Finance Agency ). Treasury is buying the debt for this, so the taxpayers are at risk. It is not that big a deal, yet. It starts out with a modest $28b.

“These bond proceeds, combined with the $7.7 billion in retail housing bonds the Initiative requires state HFAs to issue, will allow HFAs to finance more than 200,000 affordable homes, while generating jobs and tax revenue for the economy,” said Susan Dewey, president of the National Council of State Housing Agencies (NCSHA)

That's hardly all. STATES, under this program, are REQUIRED to bond an additional $7.7Bn (in Wisconsin, that will be WHEDA, I guess) in order to participate.

No discussion? No debate? Simple.

The Gumminters can do that because they claim there will be "no cost to the taxpayers" from this.

HT: ZeroHedge

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