Dr. Frankenstein at Fannie

By David Freddoso

If Barack Obama is so concerned about the current economic crisis, why is he consulting those who played such a large role in causing it? That question came up again when Ben Smith of the Politico reported last month that Jim Johnson, former CEO of Fannie Mae, would be delivering an Obama campaign briefing to a group of Democratic luminaries, mostly former members of Hillary Clinton’s campaign brain-trust today.

Jim Johnson served as Fannie’s CEO from 1991 to 1998 and since then has served as a consultant to the company with a lucrative $600,000 annual contract. A Minnesotan who once served as an aide to Vice President Walter Mondale and made a career on Wall Street, Johnson received some publicity for his brief stint with the Obama campaign’s vice-presidential vetting operation earlier this year. Despite the fact that Johnson had helped choose running mates for Mondale and for John Kerry, Obama brought him on for this process anyway. Johnson had to quit that unpaid position, however, after the Wall Street Journal revealed that he’d accepted $5 million in loans from the now-defunct company Countrywide Home Loans — loans made outside of the company’s normal underwriting channels.

Countrywide had been an official partner of Fannie Mae, selling most of its loans to Fannie. It was one of the prime offenders in making bad mortgage loans; it was also one of the first dominoes to fall in the sub-prime crisis, and Barack Obama had denounced the company by name. Johnson was one of those who had received sweetheart loans in part of a program for friends of Angelo Mozilo, Countrywide’s CEO.

But Johnson’s time at Fannie Mae, which was founded in 1938, is also very interesting to study. Fannie, along with Freddie Mac, is a critical institution in today’s crisis of economic confidence. These institutions have historically controlled about half of what is called the “secondary mortgage market,” where mortgages are rolled into securities and re-sold in large packages to investors -- usually banks or other large financial institutions. This is how bad loans made their way from Main Street to Wall Street.

Prior to the crisis, Fannie and Freddie dominated the secondary mortgage market thanks in large part to the special tax exemptions and regulatory advantages they enjoy over competing private institutions. They do not have to keep as much money in reserve as do banks. They are exempt from taxes. Prior to their recent takeover by the federal government, they had a $4.5 billion line of credit with the U.S. Treasury. The implicit government guarantee behind the two companies made it possible for them to borrow money more cheaply than others.

Beyond these advantages, U.S. bank regulators gave preference to Fannie and Freddie debt, allowing banks to hold it instead of just government bonds and cash as part of their “tier-one capital” -- the rainy-day funds that banks are required to keep on hand in case all else fails. This encouraged American banks to accumulate more than $1 trillion in GSE-related securities by 2004, according to the FDIC, and kept Fannie and Freddie flush with cash -- for a time, anyway.

The Washington Post and Fortune magazine have reported on Johnson’s most important work -- the creation of Fannie’s clout machine in Washington and on Capitol Hill. Johnson, a true believer in Fannie’s role of expanding homeownership to less credit-worthy individuals, honed the company’s response to criticisms of its mission and its special advantages in the market. In order to ramp up Fannie’s lobbying operation, Johnson hired powerful Democratic and Republican staffers when they left the government.

Beginning in 1994, he established field offices for grassroots lobbying—“Partnership Offices,” they were called—from which Fannie operatives pressured uncooperative politicians. His strategy was to demonize anyone who worked against his goals as an enemy of affordable housing.

Johnson was never implicated in the accounting scandal that ensued immediately after he left Fannie, but his role at the company was to create an expensive noise machine, a lobbying operation that would spend $94 million over the following nine years under his successor, Franklin Raines. When Fannie’s accounting irregularities, which began in 1998, became known to members of Congress in 2003, Raines would set Fannie’s massive influence-machine to work in an effort to discredit the company’s regulators.

What Johnson had created in order to defend the principle of “affordable housing” would be used to shout down critics of Fannie Mae at a time when they needed to be heard -- as they helped plunge America into its current crisis of liquidity and confidence.

Glenn Beck: Here's how YOU can fix the Great Reset's housing crisis

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How's the housing market looking these days? Because under Build Back Better (aka the Great Reset), investors are grabbing up homes at a record pace.

On "The Glenn Beck Radio Program," Glenn discussed a recent Redfin News report, which shows that almost one in five homes sold in the U.S. during the third quarter of 2021 was purchased by an investment firm, and many are paying tens of thousands of dollars over the asking price.

"Think of that, one in every five homes that are sold are going to a big investment firm," Glenn said. "Investors bought more than 90,000 homes, totaling more than $63 billion, representing 18% of all homes sold in the quarter. The numbers broke all records."

"The same factors have pushed more Americans to rent, which also creates opportunities for investors, because investors typically turn the homes they purchase into rentals," he continued. "And now they can charge higher rents. Rent for single-family homes surged by more than 10% in the 12 months, through September. The fastest annual rent inflation in 16 years."

"And nearly 77% purchased were bought in an all-cash transaction," Glenn added. "That's not your average person. These investment firms, like BlackRock, are going in and buying entire neighborhoods. They are the people that come in, and say, 'I'll give you $70,000 over the asking price.' ... Now, why would investment firms think they will just be able to make money paying $70,000 over the asking price? What is it that they know, that you don't know? Could they know, as the Great Reset states, that by 2030, you will own nothing and you'll like it?"

Watch the video clip below to hear Glenn offer his thoughts on how you can solve the Great Reset's housing crisis:


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On "Glenn TV" Wednesday, Glenn Beck exposes the radical plan to flip the United States from capitalism to socialism and into a lawless nation. It's an old strategy that mirrors a communist Cold War playbook. The goal now, as it was then, is this: How do they get a revolution without all that civil war stuff? It’s a five-step plan, and we're deep into several of the main steps RIGHT NOW.

Our justice system has been infiltrated by woke leftists, and something called "the progressive prosecutor movement" is methodically transforming Main Street USA into Main Street Gotham City. We can see it all over the country in places like San Francisco, with the Waukesha massacre as a terrifying glimpse into more of what's coming. And the media? They're currently running interference in one of the largest misinformation operations in history.

It’s happening at the city, state, AND federal levels. And President Trump might be one of the biggest victims of them all, a fact that even Trump critic Joe Rogan has realized on the Russia collusion hoax: “No one is being held accountable!” That ends now, as Glenn calls on Americans to push back on the lies that keep us divided in a cold civil war.

Watch the full episode below:

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A "one-world government" is being formed right now and it’s called the Great Reset, Glenn Beck said on the radio program Monday. And now, rebuild plans for the fire-damaged Notre Dame Cathedral hint at the formation of a global church, too.

In this clip, Glenn detailed plans for the iconic, 850-year-old church’s "woke" renovations that sound more like a 'politically correct Disneyland' complete with a "discovery trail," "emotional spaces," and 14 themed chapels.

"Notre Dame is now being built back better as a 'woke theme park' dedicated to environmentalism and social justice," Glenn explained.

"There will be several different chapels within, [for example] a chapel for social justice, and then chapel for environmental justice," he continued. "Which leads me to this point. The 'one-world government' is being formed, right now. One-world government. It is being formed and it's called The Great Reset."

Glenn went on to predict that one of the first steps in the direction of a one-world government will be a push for a global religion.

"I think we're seeing the first church now being dedicated to the new global religion — and it is social justice, environmental justice, and all this gobbledygook. We all know, it's not just wrong, it is dangerous. That's the first church, the cathedral of Notre Dame, in France, is the first global church. Mark my words. Christian, Jews, Muslims ... this global church will bring darkness unlike you've ever seen."

Watch the video clip from "The Glenn Beck Program" below:

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The Omicron COVID-19 variant: Should we ACTUALLY panic?

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As the new Omicron variant of the coronavirus approaches, it seems like those in power want everyone to be terrified, Glenn Beck argued on the radio program Monday.

The chair of the World Medical Association's Council, Frank Ulrich Montgomery, is already comparing the variant to Ebola and New York Gov. Kathy Hochul (D) has declared a state of emergency, despite the doctor who announced its discovery describing the new variant's symptoms as "unusual, but mild." So, should we really be worried or not?

In this clip, Glenn and producer Stu Burguiere reviewed what we know about the Omicron variant so far and gave a few reasons why we should wait for more information before succumbing to panic.

Note: The content of this clip does not provide medical advice. Please seek the advice of local health officials for any COVID-related questions & concerns.

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