The next time you hear anyone in this administration tell you how we’ve turned the corner, and that all the deficit spending that has been done has prevented the economy from sinking further, consider where housing markets and foreclosures are going.

• Fannie Mae will seek $15.3 billion in U.S. aid, bringing the total owed under a government lifeline to $76.2 billion, after its 10th consecutive quarterly loss.
• “Our financial results for 2009 reflected the continued adverse impact of the weak economy and housing market, which has resulted in record mortgage delinquencies and contributed to our recording significant credit-related expenses and net losses during each quarter of the year.
• For the full year, Fannie Mae’s loss widened to $74.4 billion from $59.8 billion in 2008.
• After the next government payout, Fannie Mae’s borrowings will carry an annual dividend cost of $7.6 billion, which the company said it will repay by borrowing more money from the Treasury. “This amount exceeds our reported annual net income for all but one of the last eight years, in most cases by a significant margin,” the company said.

What? Fannie Mae (owned by the government) will repay its bailout money by borrowing from the Treasury. Huh? This is illegal if you tried this scam. That’s why Bernie Madoff is in jail.

• Losses at Fannie Mae are likely to grow with rising unemployment and costs to implement President Barack Obama’s plans to reduce foreclosures, the company said.

Here’s a Obamanomics for dummies refresher. Replace the word ‘investment’ with ‘bailout.’ Then replace the word ‘bailout’ with ‘takeover.’ This should make you feel better.

• Fannie Mae and McLean, Virginia-based Freddie Mac survived last year on investments the government made in the companies. The Treasury on Christmas Eve removed a $200 billion aid limit on each company, extending unlimited backing through 2012.
• A record 3 million U.S. homes will be repossessed by lenders this year as unemployment and depressed home values leave borrowers unable to sell or make their house payments.

Meanwhile, if you are looking for a job to keep from losing your home, it may take awhile. I think that’s the HOPE that candidate Obama was talking about. Right now, Obama is concentrating on taking over the health care decisions of all Americans instead of economic recovery through the private sector.

When President Barack Obama signed his $787 billion “stimulus” bill into law last year, he said the bill was “the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs; to provide relief for families worried they won’t be able to pay next month’s bills; and to set our economy on a firmer foundation.”  The actual results of the stimulus tell a different story. I guess he just lied to us all. I think that’s the CHANGE part.

• The amount of nonperforming loans that Fannie Mae guarantees for other investors rose to $174.6 billion from $163.9 billion in the third quarter.

But this might make you feel better. Or not. Treasury Secretary Timothy F. Geithner told the House Budget Committee on Feb. 24.

“We are going to propose reforms to the Congress next year to try to make sure we bring about fundamental change in the housing market and get ourselves in a position where the government is playing a less risky, but more constructive role in supporting housing markets,” Geithner said. “That’s going to be a difficult set of reforms.”

No doubt it will be to borrow our way into hyperinflation. Let’s put this old dog to sleep. Save some money on that Debt Commission Mr. President. Try this simple method. Look in the checkbook. If you see red, don’t spend. Don’t borrow. And don’t steal.

Updated 2/28/2010

Link: Fannie Taps Treasury for $15.3 Billion More After a 10th Loss – Bloomberg.com.

The House has an important vote today that directly affects your wallet and those of future generations, again. Apparently, all the new cuts and freezes that Obama is talking about requires raising the debt limit another $1.9 trillion.  That amounts to $6,000 for every U.S. resident. Already, the accumulated debt amounts to $40,000 per person. What is important about today’s vote is that if the House does not pass this increase, then there’s not enough borrowed money to implement the budget that Obama just presented to Congress.

The nut of Obamanomics is for the government to spend its way into prosperity and borrow its way out of debt. So in order to say he wants to cut spending and freeze spending (by less than 1%), he first needs to borrow and spend another $1.9 trillion, raising the cap on federal borrowing to $14.3 trillion. It’s obvious that neither Obama or his advisers are economic geniuses, but rather tax and spend idealogs where increases are cuts and up is down.

Related links: FOXNews.com – House Faces Tough Vote on $1.9T More Debt. | Obama’s Economic House Of Cards

It’s a good thing the President has a handle on the economy now. I mean, after all, the deficit he inherited from the Bush administration was enormous. Last year’s deficit surged to $1.42 trillion, more than three times the record of the previous year. So Bush’s last year budget deficit was $454.8 billion. Obama’s budget deficit last year was $1.42 trillion. That’s nearly $1 trillion more that he added to it in fiscal 2009. This business that he “inherited a $1.3 trillion budget deficit” is a lie. It’s a lie through and through. He has added $1 trillion.

Jeb Hensarling (R-TX) went on MSNBC today to put the lie to what Obama had said at the retreat in Baltimore to rest. Hensarling . . .

If you look at the 12 years when Republicans controlled the Congress, the average annual deficit was about $104 billion. I’m not proud of that number. That’s too high. But in the three years that Democrats have controlled Congress, the average annual deficit is now $1.1 trillion. Do the math. What used to be an annual deficit under Republicans has become a monthly deficit under Democrats.

But he’s got a grip on it, or us, now. Now, his budget is built on a house of cards that takes the deficit to between $8-15 trillion dollars (depending on whose numbers you want to use) in the next 10 years. And that is dependent upon Congress voting to raise the debt ceiling another $1.9 trillion. In just this past year, his budget is a mere 35% greater than they said it would be 12 months ago. Imagine how their estimates for health care and all the other government-building spending they propose will be?

The President asked for ideas from us serfs during his SOTU speech. Here’s one. Repeal the drug program that you criticize Bush for creating, the one you voted for as a Senator. The one that you said couldn’t be paid for. OK, so kill it. Now. Viola, look how much of the deficit you just ‘saved.’

Do you get the impression that this administration doesn’t care how much they spend as long as they reach their goal of destroying the economy so as to reduce it to a socialist utopia via his facist economic policies? I do.

The house of cards, which I call this budget, is based on tax increases, it is based on the economy growing, it is based on taxes from cap and trade, it is based on costs of health care decreasing. Essentially, this budget buster is based on receiving trillions of dollars from from programs that are not in place and based on the most optimistic of projections. It is the definition of ‘smoke and mirrors.’

Here’s something else to ponder about our economic circumstances. At the current interest rate on bonds, which is at 3%, a historic low, in 5 years the interest on our debt will be nearly a trillion dollars a year. That’s over a third of our GDP and about equal to all the money raised by income taxes. What happens when China stops buying our debt, which it is already signalling it intends to do, and interest rates rise? The interest on this debt, and by this debt I mean the debt we’ve got right now. That’s not including the debt that Obama wants to pile on. When interest rates go up further, the interest payments on this debt will be more than our GDP. The only way out then is hyperinflation, the devaluation of the dollar.

After taxing the rich, the spending programs will end up taxing the rest in increase cost all the way down the scale. So what’s left for the government to get their hands on when all else is maxed out? Your retirement plans, your 401K’s, your IRA’s. Whether this happens before or after hyperinflation kicks in is just a matter of timing. They’ve already got their eyes on the trillions of dollars Americans have managed to save for themselves. If only the government ran its business like you and I have to, we wouldn’t be in this precarious economic condition.

Best bet now is to salvage what you have left before the government takes it and gives you an IOU like they did with your Social Security. Asset protection now means cashing in your retirement funds and investing it somewhere where the government can’t get its greedy little hands on it.

You’ve heard it before, but it’s worth repeating. You can’t spend your way into prosperity, nor borrow your way out of debt. Sir Winston Churchill

Updated: 9:43
link: Big bang gives way to busted budget

‘Lifting the poor out of misery.’ Look how well that works for socialists and communists the world over.

Link: Capitalism’s woes cheered at World Social Forum – Yahoo! News.