The Obama Administration is under fire again. In a new slew of unsealed documents, they were caught red-handed stealing funds from citizens to pay for social programs. In this case, the Net Worth Sweep cases surrounding Freddie Mac and Fannie Mae are the center of attention, and they show that Obama largely operated his government through illicit means.
When you see just how far the administration went to hide and steal funds and circumvent the federal process, you will be enraged. Worst of all, the actions were taken deliberately, as evidenced by the newly released documents.
The Net Worth Sweep
When the housing bubble collapsed, Fannie Mae and Freddie Mac were unsurprisingly hit pretty hard. For a few years they operated at losses in the tens of billions of dollars. Anticipating this, the government changed regulatory oversight for the associations in 2008. That was when they were folded into the Federal Housing Finance Agency (FHFA).
With this reorganization, they were able to borrow the necessary money to keep their operations running. By the second half of 2011, they had returned to profitability. During the period of operational losses, they borrowed a combined total of $187.5 billion. The original loans were granted on condition of a 10-percent dividend repayment plan that would enable Fannie and Freddie to ultimately repay their debts without delaying payments to investors.
This is where we get to the Net Worth Sweep. In 2012, the Obama Administration changed the terms of the loans. Instead of just paying a 10-percent dividend, Freddie and Mac would have to make floating repayments based on their net worth (hence the name). Since it was enacted, both associations have been largely profitable, and the loan repayments have totaled $264 billion. You might notice that this number is 30 percent larger than the original loan. What’s worse is that Freddie and Fannie both currently owe the entire principal loan. Under the Net Worth Sweep, they are perpetually in debt, and shareholders have not been compensated for their investments.
The justification for the Net Worth Sweep was to enable Freddie and Fannie to continue borrowing money at rates they could afford. If they were operating at a loss, they would rack up less debt and not risk financial collapse. That sounds great until you actually review the numbers. By the second half of 2011, both associations were generating profits. When the Sweep was signed in 2012, Fannie Mae alone had already turned roughly $10 billion in profits in that year alone. The signs were clear that the groups were going to make a lot of money, and there was no question that shareholders were being denied due compensation in order for the Treasury to essentially steal funds for other programs.
This might sound like conjecture, but roughly 3,500 Obama-Administration documents were recently released. These documents have made it clear that the administration knew that Fannie and Freddie were profitable and that the Sweep would enable the government to glean massive paydays from the associations. This gave them access to tens of billions of dollars every year that they could spend without Congressional approval.
It’s worth noting at this point that the FHFA has been exempt from the Freedom of Information Act since its inception. This exemption is what enabled the Obama Administration to keep their dark dealings secret for so long. It is only after several years of litigation that the documents were unsealed, and they show that Obama was once again operating unilaterally for his own gains. The bulk of the stolen Fannie and Freddie funds went to pay for health insurance subsidies, and without those extra funds, Obamacare would have bankrupted in 2012. It only persists today because of illegal funding.
There is no question that Obama got away with so many underhanded deals because he was not afforded the level of scrutiny that should be aimed at the President. While Trumps faces unparalleled criticism and meddling, Obama was left alone to steal money, target Republicans through the IRS, enable nuclear arms development among our enemies and an almost countless number of other dangerous actions. If he had faced even one-tenth of the scrutiny aimed at Trump, Obamacare would already be dead, and America would be in a much better situation.
~ American Liberty Report