Secretary Steven Mnuchin Discusses Fannie Mae and Freddie Mac Reform, China Trade Negotiations and Overall U.S. Economy…

Treasury Secretary Steven Mnuchin appears for an interview with Maria Bartiromo to discuss the Trump administration’s efforts to return privatization to Fannie Mae and Freddie Mac, the state of the U.S. economy, U.S. trade talks with China, USMCA and government spending.

Ms. Bartiromo is very concerned about retaining the wealth position for her friends on Wall Street and the Asian investment needs of U.S. multinational corporations.

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This entry was posted in Big Government, China, Communist, Decepticons, Donald Trump, Economy, Election 2020, media bias, President Trump, Trade Deal, Uncategorized, US Treasury, USA, USMCA. Bookmark the permalink.

24 Responses to Secretary Steven Mnuchin Discusses Fannie Mae and Freddie Mac Reform, China Trade Negotiations and Overall U.S. Economy…

  1. Sentient says:

    Taxpayers weren’t at risk on Fannie/Freddie mortgage backed securities in 2008, but Hank Paulson put them at risk by saying the federal government needed to indemnify bond holders – despite the FACT that Fannie/Freddie bonds said on page one “NOT guaranteed by the full faith and credit of the United States”. That was the biggest mistake at the time. Spinning off Fannie and Freddie doesn’t eliminate the risk that the same thing would happen next time- that they would simply be deemed “too big to fail”. And having them be ostensibly “private” might be justification to let them do stupid stuff – with government swooping in later to “fix” their mistakes. Privatization is good in theory, but not when the government has proven unwilling to let anything fail.

    Liked by 6 people

    • What was your solution?

      Like

      • Sentient says:

        In 2008, I’d have let anyone (or institution or mutual fund) that owned Fannie/Freddie mortgage-backed securities take their lumps. The responsibility to monitor the kind of lending that Fannie/Freddie facilitated was on those investors and existed before the housing collapse, not after. As it was, we took their lumps. At this point I’d leave things as they are. Note that there is no push to privatize Ginnie Mae – the agency that insures and securitizes FHA loans.

        Liked by 9 people

        • Sherri Young says:

          Did the investors take the risk or not?

          Evidently not. It landed on us. Never should have happened that way. I was shocked.

          I manage a few mortgages that my parents originated. Recently, I have been getting solicitation letters from companies that want to buy the mortgages. One of the letters said they would be interested in buying loans already in default.

          Isn’t that just special? /sarc

          Not too difficult to see that risk is building up in the mortgage market again. However, foreclosure might not be such a winner this time around, especially in more modest houses. In order to get around the possibility of being evicted if they bring additional residents, Hispanics like to buy little houses and invite multiple family members to live with them and share the expenses. They bring over their elderly parents to take care of the kids while the working age adults go out and earn money. However, there is tension growing over the possibility of deportation. Attendance is down at a local evangelical church with a Salvadoran pastor. The members have said they are nervous about the possibility of getting caught up in an ICE raid at that church. I doubt that nearly as many of these couples would be interested in handing over a down payment if they thought they might be deported and lose the down payments and the houses.

          I tend to agree with Mnuchin except for the full faith and credit provision. Cut Freddie and Fannie free. Let them use retained earnings to recapitalize. Get the taxpayers out of the mortgage industry and get rid of the Community Reinvestment Act. Send Franklin Raines to prison.

          My two cents.

          Like

        • I’m with you on private investors taking their lumps, Sentient.

          Looks like Mnuchin plans to address Ginnie Mae as well … looking for him to negotiate us off the hook!

          Liked by 1 person

      • Dutchman says:

        The repealed a good and useful, necesary ‘regulation’; Glass/Seagull.

        When the inevitable happened as a result, the wrote a HORRIBLE law, Dodd Franks, and with the foxes in charge of the henhouse, ‘things’just got worse.
        i.e. the TBTF, got BIGGER, and more prone to failure, and the gurantee of a bailout, and concommittant moral hazard increased.

        Ultimately, one way to look at it is decoupling from China is just part of a broader goal of decoupling from Wall street. Make these asshats largely irrelevant, in order to cut them down to size?

        Liked by 6 people

        • BINGO:
          • Decouple from Wall Street
          • AuditFed with ACCOUNTABILITY.

          Liked by 2 people

          • Dutchman says:

            Funny, Rand Paul made that one of the issues of his campaign. He was a Libertarian Populist.
            Was taking on Romney, and got shafted in the primaries, when the lights went out, for 30 seconds. Lights came back on, and there was an extra box of ballots, sitting on the table.
            It was a caucus, in a key state, key district. Paul had it, and those magic ballots put Romney over the top, in that state.
            Which gave him the nomination. Yeah, audit the Fed, so how DID we get a Fed in the first place?

            0h, yeah,…..CONgress. Seems like everything ‘wrong’ can be traced back to,…CONgress…..

            Liked by 1 person

    • thedoc00 says:

      If they were truly “privatized”, in 2009, then there should be people in jail or paying heavy fines for the many SEC and FTC regulations regarding fiduciary responsibility as well as private financial institution operations that were broken as part of the fake crash of 2008-09.

      Laws and regulations were created specifically for them to allow Wall Street Financiers to clear their books (at tax payer expense) in preparation for major investments overseas to take advantage of NAFTA but more importantly China Inc. favorable TPP. It also dumped allot of money into DNC coffers via the UAW pensions funds as part of the auto-industry bailout.

      Liked by 6 people

    • Sbark says:

      Similar to FDIC ins…..rather than depositors researching individual bank soundness, it put onus back on taxpayers . Rather than a individual bank fail to mismanagement, it ultimatly puts entire system at risk., heck a entire society. Another symptom of central banking?.

      Like

    • MAJA says:

      Congress forced FHA, Fannie and Freddie to adopt high risk lending rules, thanks to Dodd and Frank. These two clowns supported homeownership for all despite the lack of borrower credit worthiness, supported the rescission of the Glass Steagall act, and then came to the rescue with the ponderous 2010 Dodd Frank Wall Street Reform law that led the way to establishing the CFPB, which was warren’s crowning achievement. CFPB has run oversight free with it’s hands in everyone’s pockets and is one of the biggest scams in my memory. Every loan has loan level adjustments (meaning a percentage of each loan written) which goes to fund other government programs on the backs of Americans in order to fund things like ACA. The Trump Administration is a God send in so many ways by repealing the gov regulations and getting the boot of unfettered unelected bureaucrats off of the economy.

      Like

  2. Henry chance says:

    This topic is far to complex for Obamacrat heads.

    Liked by 3 people

    • GB Bari says:

      Maybe but they have mastered the process of passing big spending bills that funnel most of the money to their political cronies who in turn shove a significant percentage of those dollars right back into DemonRAT campaign chests.

      To be fair, the RepubliCONs have been almost as guilty of the same shenanigans.

      Like

  3. ristvan says:

    Another mess that Obama let fester for 8 years, that PDJT and team are cleaning up.
    Not as important as the Wall or USMCA or WOTUS or CPP, but the team is working down a very long list.
    Eventually, after 2020 and PDJT takes back the House and strengthens the Senate, they will hopefully get to fixing the EPA CO2 endangerment finding. Cleanest fix is to legislatively change the CAA definition of a pollutant from the circular mess it now is, a pollutant is that which pollutes, with no meaningful definition of pollutes, enabling Mass. v EPA.
    EPA following the APA46 process would just invite interminable lawsuits in the 9th circuit and DC.

    Liked by 5 people

  4. ALEX says:

    Maria did great work on the Russian Collusion Hoax…When I started working at a Brokerage House in the early nineties her type of attitude today is the same as most then. It’s the same as the Swamp when it comes to narrative and self preservation. Sundance is one of the best at exposing this in all matters.

    Needless to say, I was one of very few who voted for Perot or at the least would reconcile his truths with the truths of the forthcoming de industrialization of this country….very few will stand on principles in these matters.

    Liked by 5 people

    • MBRyan says:

      I agree. I generally like Maria, but she is playing games here. I watched her interview Peter Navarro on the weekend, and she brought up th same point about USMCA being a problem with Mexican workers getting low wages. Navarro informed her that the USMCA sets minimum wages of $16 per hour. Here she is bringing up the false $1.50 an hour point again.

      Liked by 1 person

      • BitterC says:

        I thought I read long ago that the $16/hr min wage in the USMCA is for Mexican auto workers. I don’t believe it’s for “everything” and rightly so. That wouldn’t make sense. So Maria is not completely wrong

        Liked by 2 people

  5. MaineCoon says:

    How is the taxpayer bail-out in 2007-2008+ of the TBTF banks different than the current-on-the-books bail-in law. In the former, the taxpayers paid the bill to save the banks and in the latter, the individual bank account holders pay the bill…..unless my memory of the process has failed me….

    Main Street screwed, again.

    Liked by 2 people

  6. Sherri Young says:

    Now is a good time to recall that the Obama campaign’s financial advisor was none other than the ever so corrupt Franklin Raines.

    I rest my case.

    Liked by 2 people

    • CountryDoc says:

      Sherri, what are the connections of Franklin Raines to the topics here? Who was he? What was his position? Where is he now?

      Like

      • Sherri Young says:

        Franklin Raines was the CEO of Freddie Mac. Part of his compensation was performance-based. He had the books cooked to the point that he extracted the maximum bonus every single bonus period right down to the penny up to the time that Freddie Mac failed.

        Where is he now?

        Not prison, where he belongs.

        Liked by 3 people

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