Obama’s August Surprise?
Rumor doing the rounds is that, in order for Obama to increase his flagging poll numbers, he will be instructing Fannie Mae and Freddie Mac to “forgive” some of the mortgage debt of millions of Americans (bet you wish you were one of them right now!). That’s right folks – American tax money will be spent bailing out mortgages of people who shouldn’t have gotten loans in the first place! How’s that for redistributing your wealth?
Rumors are spreading that in the face of a predicted blowout for Dems in November and Obama’s ever lowering approval numbers, he is planning to order Fannie Mae and Freddie Mac to renegotiate down the principal on mortgages where the properties are now worth less than the existing mortgages.
He’s banking on another redistribution of assets to save his and his party’s hides. James Pethokoukis writes on Reuters:
The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie.