The Jawa Report: VIDEO: Fannie Mae CEO Calls Obama Member of “The Family,” CBC Democrats “The Conscience of Fannie Mae

Fast-forward to 2008, where Fannie Mae and Freddie Mac have essentially been taken over by the federal government and a government bailout is being debated. Raines has long since left Fannie Mae in disgrace, but not without first securing himself a multi-million dollar severance package.

He is now one of Barack Obama’s economic advisors.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980′s.

In other words, this failure was predicted. Full 1999 article linked below. Hat tip to BuzzBrockway.com.

Fannie Mae Eases Credit To Aid Mortgage Lending – New York Times

Under [President Bill] Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton’s secretary of Housing and Urban Development, Andrew Cuomo, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae’s and Freddie Mac’s portfolio be made up of loans to low- to moderate-income borrowers by the year 2001.

And that, boys and girls, is how it came to be that those of you who pay your mortgage will bail out those who should not have received one at all.

Ann Coulter :: Townhall.com :: They Gave Your Mortgage To A Less Qualified Minority

Brit Hume | Special Report – FOXNews.com