Please Mr. Senator, end Fannie and Freddie now!

The news this morning is that Fannie Mae will ask the government for an additional $8.4 Billion in assistance. That's right, another $8.4 Billion on top of the $84 Billion that Fannie has already received. The request comes on the heels of Fannie's most recent quarterly earnings in which the company reports an $11.5 Billion loss for the first quarter of 2010. In the Wall Street Journal that author notes that Fannie and Freddie are providing stability to the housing market, implying that their existence is necessary. At a cost of $145 Billion? Really?

Here are some further facts for you. Fannie has over $3 Trillion in loans... $3 Trillion... In the entire world, only the US, China, Japan, and Germany have a GDP that is higher than the amount of loans Fannie has guaranteed... Think about that.

In the first quarter of 2010 Fannie, Freddie, and the FHA provided guarantees and insurance on 96.5% of all new home loans. It is the proverbial monopoly

While every other financial firm of similar size is thoroughly diversified in vast arrays of markets, Fannie and Freddie are involved in one single asset class. Compare them to Bank of America, JP Morgan Chase, Goldman Sachs, and Wells Fargo and you begin to see why these two companies should not exist. No company of that size can survive offering one single product unless they have a monopoly. In the case of Fannie and Freddie, I think that the 96.5% number demonstrates that they have a state-granted monopoly which is unhealthy, dangerous, reckless, irresponsible, and now it appears to be criminal given the rate at which they are destroying the value of taxpayers dollars.

Mr. Senator, when will this end? Just get it over with. Break these companies apart, end the monopoly, save taxpayers from having to finance a lifestyle that many people were never qualified for, and let the markets fall to their REAL levels. Nearly everyone can see that this is unsustainable, why can't you? You should have realized this $145 Billion ago. Please do this now before we waste another $145 Billion. And while you're at it, Mr. Senator, please raise interest rates, quit manipulating false economic results, stop lending to unqualified people through the FHA, and realize that not every American can afford a home, nor should they. Please do this Mr. Senator, before it is too late.