Liberals voted against reforming Fannie/Freddie, again!

In case you have not heard, Eric Cantor and his Whip staff designed an interesting concept called YouCut.  You log in and then cast votes on what you want to cut from the Federal budget.  Each week several options are presented.  Descriptions are provided and the estimated savings amount is presented.   While some of the issues are minor and have no apparent effect on the 13.7 Trillion dollar deficit, some issues carry a moral message.  For instance in one week, Republicans proposed to freeze pay of all federal salaries.  Will this save a ton of money?  Probably not, but it is an outreach by our representatives and a symbolic gesture that we are going through the financial crisis together.

In the third week, a far more fascinating and potentially fiscally instrumental change was proposed.  The possibility to reform Fannie/Freddie and stem the bleeding.  Ideally we would see the completely dissolution of these organizations and all the bad debt exposed on the market, but beggars can't be choosers.  Here is a short blurb of how this vote and bill originated.



"With over 700,000 votes cast, it’s clear the American people - fed up with the culture of spending in Washington - have embraced YouCut as a vehicle to make their voices heard in Washington. The American people are frustrated with run-away spending in Washington and they want Congress to take action NOW to cut wasteful programs.
This week’s winning YouCut proposal would reform Fannie Mae and Freddie Mac. Sponsored by Reps. Hensarling and Garrett, the YouCut winner would save the American taxpayers an estimated $30 billion. 

House Republicans will offer this proposed cut as an amendment to the rule on the FHA Reform Act (H.R. 5072), which will be on the floor this afternoon. All 432 Members of the House, from both parties, will have the opportunity to vote to cut this program by voting “no” on the previous question motion on the rule. "




Unfortunately for the American people, liberals in charge decided that the two agencies responsible for the social engineering of housing are fine in the form they currently exist.  One almost wishes that bills of such magnitude are saved until January of 2011, when people hell bent on continuing failed policies and programs are voted out of office.  Still, it is admirable to see the GOP leadership start moving in the right direction.

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