Courtesy of Pam Martens.
Hedge Fund Titan, John Paulson
There’s a lurking memo among government documents concerning the government takeover of Fannie Mae and Freddie Mac during the 2008 financial collapse on Wall Street that undermines the raging media propaganda wars now taking place. But first some necessary background.
Similar to Judith Miller’s shilling for the Iraq war in the pages of the New York Times, which spread like an uncontrolled virus to other media, hedge funds that hope to reap billions of dollars in windfall profits in the preferred and common stock of Fannie Mae and Freddie Mac, which has continued to trade despite the government takeover, have set up a Machiavellian plot to get high-priced media real estate on board their scheme. Mainstream media as well as alternative media (that should know better) have taken the bait — hook, line and sinker.
Two writers at the Wall Street Journal have functioned as Diogenes in this churning sea of propaganda: John Carney and Joe Light. Carney has brilliantly and cogently explained why it “would take decades” to build adequate capital at Fannie and Freddie and set them free from the September 2008 conservatorship under which the U.S. government placed them in an effort to save the rest of the financial system. Joe Light has done yeoman’s work in laying bare the lengths to which hedge fund titans like John Paulson (already bathed in shame for his scurrilous acts with the vampire squid) are willing to go to push their greed agenda with Fannie and Freddie’s stock. See here and here.
Wall Street On Parade has also attempted to open the public’s eyes to the continuing dangerous exposure to derivatives at Fannie and Freddie and the Wall Street mega bank beneficiaries that continue to gorge on billions of dollars of payouts on these derivatives.
Yes, there are plenty of secrets the U.S. government is keeping from the public about Freddie and Fannie, just not the ones the hedge funds are trying to sell to the courts and an increasingly gullible media. Many of the hedge funds and other investors who have taken arguments to court that they are being treated unfairly by the government bought the Fannie and Freddie stocks after the share prices had collapsed and simply want to boost the stock prices with a propaganda war that offers hope they might achieve a court victory. That’s worked out pretty well so far.
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