Just so everyone knows the score. Our Virginia delegation voted against the bailout plan 6 to 5:
Virginia’s congressional delegation was sharply divided, with six voting against the package and five in favor. Bobby Scott was the only Virginia Democrat voting against the bill. He joined Republicans Robert Wittman, Thelma Drake, Randy Forbes, Virginia Goode and Robert Goodlatte.
Voting for the legislation were Republicans Eric Cantor, Frank Wolf and Tom Davis, and Democrats Jim Moran and Rick Boucher.
If I recall correctly, Eric Cantor was one of the Republicans front and center really pushing this thing.
But since my Representative is Frank Wolf, that’s who has some explaining to do to me (OK, not me in particular, but his constituents in general). And check THIS out. His former primary opponent, Vern McKinley (whom Mr. Wolf trounced 9 to 1), reportedly warned about Freddie Mac and Fannie Mae more than 10 years ago:
“Although Freddie and Fannie are privately owned, they are what is known as government-sponsored enterprises (GSEs). GSEs don’t have to follow all the rules that true privately owned companies do: they don’t have to register their securities with the government, their securities receive special treatment for investment purposes, they don’t have to pay state and local income taxes and–most important–their government sponsorship gives them the aura of a fully guaranteed government entity. That final benefit means they save billions in borrowing costs, just as lenders are willing to offer low-interest student loans that are guaranteed by the government. That savings alone allows the GSEs to pocket about $2 billion per year, according to estimates by the Congressional Budget Office and the Treasury Department.”
“Allowing Congress to grant such special privileges is a bad idea. Those privileges, which are granted solely to Freddie and Fannie, crowd out other potential competitors in their market. Privately owned companies should not receive such preferred borrowing status, because it redirects investor funds into the middle- and upper-income housing market at the expense of other potential investments. Finally, the failure of either Freddie or Fannie could saddle taxpayers with a huge liability.”
“Congress should immediately revoke all the benefits of government sponsorship: clearly, Freddie and Fannie can be profitable without them. Eliminating special privileges will force mortgage markets to be truly competitive and will eliminate the possibility that the current system of government sponsorship will someday lead to yet another taxpayer-funded bailout.”
Just think what difference it would make if we had a few more Republicans in the House (and Senate) actually acting like Republicans. Well I’ll say one thing, there were many today who did, and I thank God for them.