David
Stevens: “MC is the absolute worst person for this job at this time.”
Continuing
with my recent theme, i.e. critiquing Federal Housing Finance Agency (FHFA)
Director Mark Calabria’s job performance, I offer the tedious (government prose)--but still
indicting--and the rhetorically predictable but fun to ponder.
Limiting my blog content to just four links, two about Calabria
and FHFA and two about our President, I'll let other carry the ball.
The
first is a recent report by the FHFA’s Office of Inspector General (the
agency’s internal watchdog), which makes public its findings, largely about
the FHFA weaknesses (many) and strengths
(not so many).
The presumption
is that Calabria, as head of the agency, is in a position to address these FHFA shortcomings.
But that's hard grunt work, not the stuff of trade association meetings and press releases, which may be why he's is not engaging in cleaning up the cited FHFA foibles.
As a model, President Trump repeatedly ignores Inspectors General (“IG”) findings and the IG's themselves, since their work comes from knowledgeable insiders which invariably embarrasses their agency superiors.
IG reports often are a butt pain for those in charge who resent/dislike the
findings.
The
POTUS just orders IG’s dismissed and/or their work otherwise trashed and
buried, so Calabria has a model.
David Stevens gets credit for birthing today's blog title, after his interview with Housing Wire.
(I'll list Stevens as "neutral"--;-)--when it comes to him rating the FHFA Director.)
Trump observations from others
Rather than personally flail at the POTUS, listen/read two articulate media personages' take on DJT’s scary behavior.
CNN’s
Brian Stelter
Joe Scarborough, former GOP Congressman and host of “Morning Joe”
Maloni,
4-28-2020
17 comments:
You have poop filled in your brain as you licked butt to get money as a lobbyist. Schizophrenic old man , stop writing on GSE on google board , no one respects you , dirty old man
Anon--
Thanks for reading and writing.
"Poop filled," "butt licker""dirty old man," who nobody "respects."
Wow, what's that say about YOU tuning into my stuff?
Deleted some "sales calls" from Internet bamboozlers!
Bill,
I have some basic questions that remain unanswered.
What is the purpose of unaccountable independent agencies in US system of governance ?
Are not unaccountable independent agencies a connived way by politicians to avoid checks and balances imposed by the constitution on three branches of Gov?
Will not these unaccountable independent agencies give immense unaccountable powers to revolving door bureaucrats who act as proxies for powerful private sector establishment?
Is not it true that SCOTUS is Complicit with politicians in defeating constitutional principles of checks and balances?
If politics and politicians are so bad then why not get rid of politcs and politicians?
q1--Thanks for reading and writing.
I am not sure which federal agencies you would put into the "unaccountable" category?
Most--on paper--are accountable to somebody, if not the President and the SCOTUS, when the latter choose to exercise their authority.
That's the basis of the Executive, Legislative, and Judicial branches beyond subject to
oversight by one another, although DJT keeps showing his ass-by refusing to allow some witnesses to testify when D's in Congress seek to exercise oversight
(I am afraid we'll soon see the ultimate test of your concerns if President Trump loses November's contest and just refuses to leave the office until the SCOTUS tells him to do so.)
Since this is mainly a GSE blog (although some people differ with me on that), I can assure you that Fannie and Freddie are very accountable and have been such--squared--since 2009. No major policy decision is made by either without the prior approval of their regulation the FHFA.
As you pursue your line of thinking, I suggest you draw a distinction between agencies which haven't acted because of executive pressure or those you think are "unaccountable" because they've acted in a way you don't like but have done so at the express direction of the presiding Adminitration.
Bill,
The Q1 questions were about unaccountable independent agencies like FHFA, CFPB, Fed... etc.
Basically the agency head and top management are appointed from from private establishments.
FnF are private shareholder companies and not Gov agencies.
Anon--Still, if disagreeing President wanted to overrule them, he could.
Second the history and Court rulings in HERA, largely, moot the simple reading of the law (think Lamberth squared to other judicial sycophants).
Courts will rule, mostly, for the side which butters its bread. (Witness McConnell's fight now to get his former lackey to the appeals court).
It's ugly, made very much so by the current POTUS, which is why I fear for our nation. Which is why enough other voters seek change in November.
Notice all of the hurdles DJT--and his gubernatorial allies, have placed in that possibility, cleansing voter registration rolls, limiting voters rules (balking at Florida laws to allow ex-prisoners to vote), opposing mail-in voting (putting a favored contributor in to run the US Post Office), etc . etc.
The November election is getting stacked--since we've heard the Russians still are involved helping him toward re-elction.
I come to conclusion Mnuchin isn't too smart if he and Trump want to make releasing GSEs irreversible. Right now, he could cancel warrant and settle with plaintiffs. The 79.9% stake isn't worth much money. He skipped a golden opportunity when the 2018 election was over and another one when Watt left. When 5th Circuit decision was out, he missed another opportunity.
GSEs could have been recapped in 2019. Now at least 2 years delay.
In 2021, a new game likely starts at square 0 or 1.
To GSEs, FHFA and Treasury are like a bad doctor. They mainly look for good body parts to be transplanted to other patients. Without their "help", the patient can heal himself and recover.
Ana--Thanks for reading and writing.
There is a "Frankenstein" linkage somewhere in your observation.
Stay healthy, you and yours.
FHFA's capital requirement is out: $234B for two GSEs. Punitive. Unnecessary.
I'm waiting for the next FHFA to change it to be reasonable in 2021.
If such a high capital is required, a higher G fee should be charged to compensate investors.
Then higher cost to borrowers.
I feel Calabria made a good a decision for himself and Mnuchin.
GSEs will be on path to exit conservatorship, yet a very difficult and long way. The duo looks good to big banks and some shareholers supporting Trump.
I'm not sure most common shareholders and junior preferred are very happy.
But there is hope. Next FHFA director will make capital requirements reasonable.
ANA--Thanks for reading and writing.
You are right, higher capital requirements (especially those published yesterday) will boost the monthly cost of GSE mortgage financing.
It's a strange opening gambit since--unless and until changed--in a presidential election year
where DJT hopes to tap his middle-class friendliness.
As I and others have been saying for months, there is a "cost" to excess capital demands and is the middle of the coronavirus the time to burden those desiring to buy homes with artificially inflated interest rates??
True colors being shown?
Bill,
I quit reading and commenting many months ago yet just jumped on out of boredom. I see you assume others comments are mine, but they are not. I gave up on having any realistic dialogue months ago when you started to delete peoples opinions. This Socialist/Communist anti free speech is why I stopped reading. Your judgment, hate filled and evil rhetoric of people and little to no GSE understanding is clear for many. This blog is really just a liberal loon hangout who can’t accept reasonable debate.
The original Anon #1
I stopped reading when I saw "communist" and "liberal loon hangout". That's when I know the "feelings" have taken over and the mind has disengaged. It happens regularly on both extremes.
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