Wherever Leftists go, they cause destruction, bankruptcy, poverty and a breakdown of what Mark Levin has reintroduced into the modern lexicon, the “civil society”. And there is no more evident example of this than the housing market.

The same people who for decades decried the lack of “affordable housing” (another Marxist Cloak Phrase, in the same vein as “living wage”) have, over the last 30+ years, caused a total breakdown in what was one of the more stable parts of the American economy over the last 100 years. That being the real estate market.

With foreclosures at a record rate, the number of mortgages underwater rising from about 5% around the time TARP I was passed to around 25% today and with the commercial real estate market also teetering, we could be in for not only a double-dip Depression, but a new housing crisis that could dwarf what started two years ago.

The major byproduct of this whole situation was of course, the passing of the Community Reinvestment Act of 1977 that was signed by President Carter. For a complete recap of how that act, along with ACORN and their chief attorney, Barack Obama helped to contribute to the current situation, read my post from last year, “ACORN: How A ‘Community Organization’ Helped Destroy the Mortgage Industry”.

Now comes word that the Barney Frank/Chris Dodd/Maxine Waters-led Crony Stalinist Slush Fund known as Fannie Mae and Freddie Mac could cost the U.S. taxpayer at least $389 billion, if not a lot more.

From Newsmax:

For all the focus on the historic federal rescue of the banking industry, it is the government’s decision to seize Fannie Mae and Freddie Mac in September 2008 that reportedly is likely to cost taxpayers the most money.

So far the tab stands at $145.9 billion and rising, the New York Times reports.

The Congressional Budget Office has predicted that the final bill could reach $389 billion.

Some analysts even estimate the total may reach $1 trillion, which Sean Egan, president of Egan-Jones Ratings, recently told Bloomberg is “a reasonable worst-case scenario.”

Egan told Bloomberg that the final tally could hit $1 trillion assuming a 20 percent loss on the companies’ more than $5 trillion in loans and guarantees, similar to what other big mortgage companies, like Countrywide Financial, suffered.

The two government-sponsored enterprises (GSEs) now own more houses than there are in Seattle and are foreclosing on homeowners whose mortgages they guaranteed, the Times said.

Fannie and Freddie maintain the houses for a while, then resell them at a huge loss.

Just another example of the Left’s Utopian Dream going up in flames, while pushing this country closer to total and complete insolvency. I cannot wait to see how expensive “free” health care will be.

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