{"id":2823,"date":"2013-08-06T18:00:41","date_gmt":"2013-08-06T22:00:41","guid":{"rendered":"http:\/\/blog.beliefnet.com\/godonomics\/?p=2823"},"modified":"2013-08-07T13:28:26","modified_gmt":"2013-08-07T17:28:26","slug":"shuttering-fannie-and-freddy-beats-making-tax-payers-shutter","status":"publish","type":"post","link":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html","title":{"rendered":"Shuttering Fannie and Freddie beats making Tax Payers Shutter"},"content":{"rendered":"

Bashing Your head into a wall should be painful. \u00a0 In fact, when your skull throbs, it reminds you not to do that again next time. \u00a0However, if every time, a person is about to face the consequences of their head-banging, a well intended friend quickly inserts a pillow between them and the wall, the wrong lesson is learned. \u00a0They learn, “OH! Banging your head into a concrete wall is actually kinda nice.”<\/p>\n

 <\/p>\n

For years, banks have been spared the consequences of making bad decisions and bad loan because Fannie and Freddy have been the proverbial government pillow keeping them from feeling the pain of making risky loans. \u00a0 When the loans go bad, instead of facing the music, they ask the government to take from the tax payers and “bail them out.” \u00a0 \u00a0Simply put, the pain of the bank’s head banging is passed on to the tax payers. \u00a0 Do banks learn the lesson? \u00a0Not if they don’t feel the pain.<\/p>\n

 <\/p>\n

Obama is championing a bipartisan effort to shutter<\/a> Fannie and Freddy. \u00a0For years, politicians have known that they have enabled bad behavior and have been left holding the bag. \u00a0 Now, at least a few politicians are trying to get us on the trajectory of moving toward privatization.<\/p>\n

 <\/p>\n

Godonomics teaches that “you reap what you sow” in due time. \u00a0 This is always true. \u00a0Unwise decisions come with consequences. If the person who does the foolish act doesn’t feel the pain, you can bet they have hired the government to outsource the pain to someone else: the taxpayer or their children’s children. \u00a0 \u00a0If we don’t stop padding the risk for banks on the front end, and then protect them from the risks on the back end, we will keep making the same mistakes.<\/p>\n

 <\/p>\n

Godonomics has a great phrase for this: “As a dog returns to his vomit, so a fool returns to his folly.” \u00a0 That’s where we are headed. \u00a0 Second verse same as the first.<\/p>\n

 <\/p>\n

Obama’s rationale sounds alot like Clinton and Bush in years past with a “We need to keep the padding in order to increase the buyers for homes…. so we can increase home production, jobs, and need for supplies.” \u00a0 He seems to have forgotten the unintended consequences of doing this last time. \u00a0 The artificial surplus of buys increases the “perceived cost” of homes and prices the poor out of the market while setting up a boom\/bust cycle in the future -as I address in the chapter, “What Would God Say to Alan Greenspan?” Apparently, we didn’t bash our heads hard enough in 2008.<\/p>\n

 <\/p>\n

Godonomics teaches that a wise man sees danger coming and hides from it, while the fool keeps going and suffers for it.<\/p>\n

 <\/p>\n

Unfortunately, in today’s Bizzaro world, \u00a0the fool wants to keep going down unwise, dangerous, and foolish roads; but have wise savers watching from their hidden refuge of margin and savings suffer for it.<\/p>\n

 <\/p>\n

I’ve worked with folks in recovery for years. I worked in a Methadone clinic in Chicago and with the poorest of poor in Atlanta and southern Georgia. \u00a0Along the way, I’ve learned that you can’t help people by rescuing them from hitting rock bottom. \u00a0Though it hurts to see people hurt, sometimes people have to to hurt in order to change. \u00a0 At least we are trying to at least think about a new trajectory.<\/p>\n

For more information, check out\u00a0www.godonomics.com<\/a><\/p>\n

 <\/p>\n

\"\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bashing Your head into a wall should be painful. \u00a0 In fact, when your skull throbs, it reminds you not to do that again next time. \u00a0However, if every time, a person is about to face the consequences of their head-banging, a well intended friend quickly inserts a pillow between them and the wall, the…<\/p>\n","protected":false},"author":353,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2823","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nShuttering Fannie and Freddie beats making Tax Payers Shutter - Godonomics<\/title>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shuttering Fannie and Freddie beats making Tax Payers Shutter - Godonomics\" \/>\n<meta property=\"og:description\" content=\"Bashing Your head into a wall should be painful. \u00a0 In fact, when your skull throbs, it reminds you not to do that again next time. \u00a0However, if every time, a person is about to face the consequences of their head-banging, a well intended friend quickly inserts a pillow between them and the wall, the…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html\" \/>\n<meta property=\"og:site_name\" content=\"Godonomics\" \/>\n<meta property=\"article:published_time\" content=\"2013-08-06T22:00:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2013-08-07T17:28:26+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.godonomics.com\/images\/godonomics-header.png\" \/>\n<meta name=\"author\" content=\"chadhovind\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Shuttering Fannie and Freddie beats making Tax Payers Shutter - Godonomics","robots":{"index":"noindex","follow":"nofollow"},"og_locale":"en_US","og_type":"article","og_title":"Shuttering Fannie and Freddie beats making Tax Payers Shutter - Godonomics","og_description":"Bashing Your head into a wall should be painful. \u00a0 In fact, when your skull throbs, it reminds you not to do that again next time. \u00a0However, if every time, a person is about to face the consequences of their head-banging, a well intended friend quickly inserts a pillow between them and the wall, the…","og_url":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html","og_site_name":"Godonomics","article_published_time":"2013-08-06T22:00:41+00:00","article_modified_time":"2013-08-07T17:28:26+00:00","og_image":[{"url":"http:\/\/www.godonomics.com\/images\/godonomics-header.png"}],"author":"chadhovind","twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html","url":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html","name":"Shuttering Fannie and Freddie beats making Tax Payers Shutter - Godonomics","isPartOf":{"@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html#primaryimage"},"image":{"@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html#primaryimage"},"thumbnailUrl":"http:\/\/www.godonomics.com\/images\/godonomics-header.png","datePublished":"2013-08-06T22:00:41+00:00","dateModified":"2013-08-07T17:28:26+00:00","author":{"@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/#\/schema\/person\/b94809cbc6e13eafdb08a63d1825e37a"},"breadcrumb":{"@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html#primaryimage","url":"http:\/\/www.godonomics.com\/images\/godonomics-header.png","contentUrl":"http:\/\/www.godonomics.com\/images\/godonomics-header.png"},{"@type":"BreadcrumbList","@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/2013\/08\/shuttering-fannie-and-freddy-beats-making-tax-payers-shutter.html#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.beliefnet.com\/columnists\/godonomics"},{"@type":"ListItem","position":2,"name":"Shuttering Fannie and Freddie beats making Tax Payers Shutter"}]},{"@type":"WebSite","@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/#website","url":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/","name":"Godonomics","description":"Beliefnet Voices - Chad Hovind","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/#\/schema\/person\/b94809cbc6e13eafdb08a63d1825e37a","name":"chadhovind","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/#\/schema\/person\/image\/","url":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-content\/wphb-cache\/gravatar\/5ce\/5ce450f147d7562d63fa6a7f70df8143x96.jpg","contentUrl":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-content\/wphb-cache\/gravatar\/5ce\/5ce450f147d7562d63fa6a7f70df8143x96.jpg","caption":"chadhovind"},"description":"Chad Hovind is Senior Pastor of Horizon Community Church in Cincinnati, Ohio. He graduated from Moody Bible College in Chicago, majoring in pastoral ministry and communication. His love for ministry and creativity can be seen in many forms: leading teams, expository teaching, acting, and video production. He has served as pastor at two high-impact churches in Georgia: Cumberland Community Church and New Community Church. Chad received an M.A. in Ministry from Moody Graduate School in 2008. He loves volleyball, movies, and hanging out with his wife Beth and their three children.","sameAs":["http:\/\/www.godonomics.com\/"],"url":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/author\/chadhovind"}]}},"_links":{"self":[{"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/posts\/2823","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/users\/353"}],"replies":[{"embeddable":true,"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/comments?post=2823"}],"version-history":[{"count":4,"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/posts\/2823\/revisions"}],"predecessor-version":[{"id":2827,"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/posts\/2823\/revisions\/2827"}],"wp:attachment":[{"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/media?parent=2823"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/categories?post=2823"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.beliefnet.com\/columnists\/godonomics\/wp-json\/wp\/v2\/tags?post=2823"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}