Politics
Fannie And Freddie Are Here To Stay According To Proposed Legislation
Published
9 years agoon
(Via ZeroHedge)
Since the US government nationalized the two GSEs in 2008 in a $187 billion bailout of the mortgage giants, there have been consistent calls for them to be wound down and for the private sector to fill the void. As we discussed, this view is, or was, shared by new Fed Chairman, Jay Powell.
Mr. Powell has called on Congress to overhaul the housing finance system, saying he’d like to see the country’s two large mortgage-finance firms, Fannie Mae and Freddie Mac, move out from under government conservatorship. More private capital in those firms would reduce the risk of a taxpayer-funded bailout in the event of a downturn, he said in a speech in July. Although the Fed isn’t responsible for housing finance, it supervises some of the country’s largest lenders who frequently sell their loan to the two agencies. “No single housing finance institution should be too big to fail,” he said.
In August this year, Fannie and Freddie’s regulator, the Federal Housing Finance Agency (FHFA), published the results of its latest annual stress tests on the two GSE’s. The FHFA outlined a “severely adverse” scenario in which US real GDP decline 6.5%, the unemployment rate rises to 10.0%, equity prices decline almost 50%, home prices decline 25% and commercial real estate prices by 35%. Under these conditions, it estimates Fannie and Freddie would need a bailout of up to $100 billion in the form of a draw on the Treasury (depending on how they treat assets to offset tax). Mortgages guaranteed by Fannie and Freddie amount to about $4 trillion and account for about 40% of the total US market.
Sadly, after almost a decade of federal ownership, the hope that Fannie and Freddie could be wound down has evaporated. Senators on both sides of the political divide have concluded that they are too big and too risky to replace. Proposed legislation in 2018 will see them retained at the centre of the US mortgage industry, rather than replacing them as a previous senate proposal tried and failed four years ago. According to the Wall Street Journal.
Lawmakers in both parties and the Trump administration are negotiating overhauls of the two companies—critical to home mortgages but in government conservatorship since the financial crisis—that could keep them at the center of the U.S. mortgage market for years to come, abandoning long-stalled proposals to wind them down, people familiar with the matter said.
Bipartisan Senate legislation set to be introduced in early 2018 marks the clearest sign of this reversal and shows how the companies, entering their 10th year under federal control, have proven too risky to attempt replacing. The housing market has seen strong demand in recent years, driven in part by steady access for many Americans to 4% or lower 30-year fixed-rate mortgages, thanks in part to a government backstop of the companies. Advancing legislation to refashion the nation’s $10 trillion mortgage market is a heavy political lift and may yet sputter during the coming midterm-election year, as a prior Senate effort did four years ago. One big difference this time around: a more incremental approach largely reliant on the existing housing-finance framework.
The new plan, proposed by Senators. Bob Corker (R., Tenn.) and Mark Warner (D., Va.) could be introduced as early as next month. Instead of a new mortgage-finance system, Fannie and Freddie will be retained under government control and permitted to issue mortgage securities guaranteed by the Treasury until private sector competitors emerge. The GSE’s investment portfolios, which have fallen to less than $250 billion each from over $900 billion each at their peak, could be liquidated under the Senate plan.
“We’re looking for a more simplified approach that protects the taxpayer, preserves the 30-year fixed mortgage and includes stronger access and affordability provisions,” Mr. Warner said in a statement Friday.
However, Bloomberg’s sources acknowledge that a private sector alternative to Fannie and Freddie will not only take years to emerge, but it’s not clear which companies will enter the market. Besides having the advantage of bi-partisanship, the proposals have the advantage that politicians who wish to reform mortgage finance are reaching retirement age as Bloomberg notes.
Another factor bolstering chances for a deal is the retirement of Washington officials interested in reducing government control of housing, including Mr. Corker. The Tennessee senator has been working with Mr. Warner and Senate Banking Committee Chairman Mike Crapo (R., Idaho) all year on the issue, according to people familiar with the deliberations, and Mr. Crapo has made the overhaul a top goal for his panel.
Even House Financial Services Committee Chairman Jeb Hensarling (R., Texas) signaled this month in a speech to Realtors that he would like to see a Fannie and Freddie deal in what is to be his final year in Congress. Mr. Hensarling said he is still committed to replacing the companies, but has backed off a position that any future setup provide no federal backstop.
Reforming mortgage finance has not been a focus for the Trump administration and nor has it endorsed any proposed legislation thus far. However, Treasury officials are reported to have been in close contact with the Senate officials as the plan has emerged. Furthermore, Treasury Secretary Steven Mnuchin, who also headed up Goldman’s mortgage securities department in the late 1990s, disagreed with calls for abolishing Fannie and Freddie last month.
“No, I wouldn’t,” he said in an interview at November’s Wall Street Journal CEO Council meeting. “We have got to make sure that the housing system is built to last.”
Bloomberg reports that supporters of Corker and Warner’s proposal see a “narrow window” in early 2018 when the legislation could be added on to another bill to reduce post-crisis regulations in the financial sector.
The question about what to do with Fannie and Freddie has now come full circle since the financial crisis. In its aftermath, the consensus view became so negative that even long-time supporters, like Democrat Barney Frank, capitulated, saying they should be abolished. In 2013, Obama called on Congress to wind them down and “end Fannie and Freddie as we know them”. However, the tide started to turn shortly after due to the lack of confidence in mortgage bonds that didn’t have a government guarantee. The latest Senate proposal is the first having bipartisan backing which keeps Fannie and Freddie instead of replacing them.
So, a bit like the “Too Big To Fail” banks, the encroachment of government into parts of the financial system which it should never have entered, makes winding back that intervention difficult, if not impossible. We could have seen it coming as Bloomberg laments.
Washington’s about-face will come as little surprise to market participants who for years predicted that efforts to replace Fannie and Freddie, which together back around half of all outstanding mortgages, would prove too difficult. But the shift on Capitol Hill nevertheless illustrates one way in which policy ideologues appear to have lost ground to market realities.
Politics
Online Provocateurs Try to Sabotage America First, Nick Fuentes, & the Groypers
Published
6 days agoon
August 2, 2026
There’s a familiar pattern on the online right. Someone builds something real over years — an audience, a coherent worldview, a network of young people who actually show up, a brand that survives deplatforming and institutional hostility — and then a new wave of operators appears to declare it illegitimate. They didn’t organize the events, endure the bans, cultivate the base, or hold the line when it was costly. They simply want the throne, or at least the right to tear it down for engagement.
That’s the story with the latest round of attacks on Nick Fuentes and the Groypers.
Fuentes did not inherit a ready-made audience or a friendly institutional lane. He built America First the hard way: livestreams that were repeatedly banned, campus activism that forced conversations the mainstream right preferred to avoid, a persistent focus on immigration, foreign policy realism, and cultural continuity that resonated with a generation of young men who felt the older conservative institutions had failed them. The “Groyper” label stuck because it described a real, identifiable cohort that kept showing up — at events, online, and increasingly in the pipelines of young Republican staffers and campus organizations. Even hostile outlets now admit the influence is measurable enough to worry about.
Building and maintaining that requires consistency under pressure. It requires continuing after payment processors cut you off, platforms exile you, and former allies distance themselves the moment the heat rises. It requires producing content night after night while the same critics who call it a “cult of personality” or “just streaming for donations” produce little of comparable durability themselves.
Contrast that with the new critics. Many of the loudest voices attacking Fuentes right now never constructed a parallel youth movement. They did not spend years turning online discontent into organized pressure. Some are lifestyle influencers or late arrivals who discovered the America First energy after it had already been cultivated, then decided the man who did the cultivation is the problem. Others are established conservative media figures who spent years ignoring or dismissing the concerns that Fuentes amplified, only to pivot into anti-Groyper moralizing once the numbers became impossible to ignore. Still others are former adjacent figures whose main contribution has been internal drama, fed accusations, and calls for people to abandon the only sustained effort in that space.
The charge that Groypers “haven’t earned the right to a movement” is particularly rich coming from people who have earned even less. A movement is not measured solely by formal PAC filings or official party titles. It is measured by whether people keep showing up, whether the ideas spread into institutions that once excluded them, and whether the core message survives repeated attempts to isolate it. By those standards, the record is clear: the people now declaring the project dead or illegitimate are usually the ones who never built a comparable alternative. They critique the architecture while offering no blueprint of their own.
What many of these attacks actually reveal is resentment at the existence of an independent pole. Fuentes and the Groypers represent a faction that cannot be fully managed by the usual donor class, media gatekeepers, or careerist influencers. That independence is treated as the real offense. If the movement can be framed as pure grift, pure online toxicity, or pure personality cult, then the hard work of building it can be dismissed and the energy redirected toward safer, more controllable channels — or simply dissipated through endless internecine fights.
Sabotage does not always look like open opposition from the left. Sometimes it looks like people on the same side of the broader cultural fight deciding that the one person who actually constructed durable infrastructure must be brought down so that no one else can claim leadership without their permission. The result is predictable: energy that could go into organizing, messaging, and institutional pressure is instead spent on purity spirals, fed-jacketing, and performative denunciations.
None of this requires treating Fuentes as above criticism. No political figure is. Tactical disagreements, questions about tone, or debates over prioritization are legitimate. What is not legitimate is the posture that says the only people allowed to speak about the future of the right are those who never did the unglamorous work of building an actual base that persists beyond a news cycle. The people who spent years creating something durable have more claim to it than the people who arrived later to declare it worthless.
Movements are not granted by committee or by the approval of competing influencers. They are earned by the people who show up when it is hard, keep producing when the platforms turn hostile, and refuse to dissolve when the internal knives come out. The new online critics have not done that work. They have not maintained anything comparable. Their primary contribution, in too many cases, is the attempt to dethrone the people who did.
That is not leadership. It is freeloading on someone else’s foundation while trying to knock the walls down.
Iowa
Zach Lahn’s Win is a Populist Blueprint for America First Republicans
Published
1 week agoon
August 1, 2026
In early June 2026, a sixth-generation Iowa farmer and political newcomer named Zach Lahn did something most consultants said was impossible. He defeated a sitting congressman, Randy Feenstra, who carried President Trump’s endorsement, in the Republican primary for governor. Lahn won a narrow but decisive victory in a crowded five-candidate field, capturing roughly 38% of the vote to Feenstra’s 37%. The establishment was outspent in key ways, outworked on the ground, and ultimately rejected by voters who wanted something different.
Lahn ran explicitly as an “Iowa First” candidate. That slogan is not marketing fluff. It is the state-level application of the same principle that animates the national America First movement: the people who live in a place, work its land, raise its families, and bear the consequences of policy should come before corporate cartels, out-of-state investors, foreign interests, and the permanent political class.
The populist core of the campaign
Lahn’s platform centered on concrete grievances that ordinary Iowans feel every day. Iowa has some of the world’s best farmland, yet family farms have been disappearing by the thousands. More than a quarter of Iowa land is controlled by out-of-state and foreign owners. A handful of companies dominate inputs. Cancer rates in the state rank among the highest and fastest-rising in the nation, a crisis Lahn and many farmers attribute in part to the chemical and industrial agricultural system. Young people continue to leave. Communities hollow out.
Lahn’s response was blunt: break up the monopolies, keep Iowa land in Iowa hands, prioritize family farms over Big Ag, demand accountability from corporations that treat farmers and families as numbers rather than neighbors, and make the state healthy again through cleaner food, water, and medicine. He accepted the first endorsement from RFK Jr.’s MAHA Action PAC and framed the fight as one against a rigged system that benefits special interests over the people who actually live there.
In his victory speech he drove the point home: nobody thought it could be done. They were outspent, opposed by the establishment, told to wait their turn. The people of Iowa answered that the state does not belong to the lobbyists, special interests, and corporate giants. It belongs to them.
This is textbook populism. It is not left-wing redistribution or right-wing nostalgia. It is the insistence that concentrated power—whether corporate, bureaucratic, or globalist—has extracted too much value from the productive majority, and that the remedy is to restore sovereignty to the people who actually inhabit the place.
America First is the governing principle
“Iowa First” is simply America First applied to a state. The same logic scales. A nation that refuses to put its own citizens, workers, borders, industries, and cultural inheritance first will eventually cease to function as a coherent nation. The alternative—treating the country as an open platform for capital, labor, and ideology from anywhere—has produced precisely the hollowed-out communities, eroded trust, and elite detachment that voters are rejecting.
Lahn’s win shows the political potency of this approach even inside a party that already claims the Trump mantle. Trump’s endorsement of Feenstra was not enough to overcome a candidate who spoke more directly to local economic pain, health concerns, and cultural continuity. Voters rewarded the candidate who treated the soil, the water, the family farm, and the next generation as inheritance rather than commodities. That is the same instinct that fuels resistance to open borders, endless foreign wars that drain American blood and treasure, trade policies that gut domestic industry, and institutional capture by interests that view Americans as interchangeable units.
The uniparty dynamic Lahn criticized—career politicians on both sides who protect the same corporate and institutional arrangements—exists nationally. When voters sense that the system is designed to extract from them rather than serve them, they look for candidates willing to say the system itself is the problem. Lahn did that on the issues that matter most to rural and working people in his state. The same dynamic operates everywhere elites have insulated themselves from the consequences of their own policies.
Why this is the way forward
America First is not a slogan. It is a recognition of political reality. Nations that refuse to prioritize their own people eventually lose the capacity to provide security, prosperity, or continuity. Local versions of the same principle—Iowa First, Texas First, whatever the place—are how the larger project becomes durable. They rebuild the habits of stewardship and mutual obligation that abstract globalism dissolves.
Lahn’s narrow upset will not decide the November general election by itself. But it already demonstrated something important: when a candidate speaks clearly about protecting the productive base of a community from concentrated power, and does so without apology, voters respond. The political class can be beaten. Special interests can be named. The people who actually live in a place can still assert that the place belongs to them.
That is populism at its best. And it is why America First is not a temporary mood. It is the only coherent response to a system that has spent decades treating the American people as an afterthought. Iowa just offered another data point. The pattern is becoming hard to miss.
Iowa
Randy Feenstra Built on Kim Reynolds’ Betrayal of Steve King: The Artificial Replacement Who Ousted a Conservative Warrior
Published
2 months agoon
May 30, 2026
In the summer of 2020, Iowa’s 4th Congressional District witnessed one of the most brazen establishment takeovers in recent Republican politics. Nine-term Congressman Steve King—the fiery, unapologetic voice of rural conservatism, border security, and Western civilization—was unceremoniously dumped by his own party. In his place? State Senator Randy Feenstra, a polished, establishment-backed challenger who cruised to victory in the June 2 primary with 45.5% of the vote to King’s 35.8%.
This wasn’t a grassroots revolt. It was a calculated betrayal orchestrated by the very insiders King had helped elevate—including Governor Kim Reynolds, whom he had proudly endorsed and supported just years earlier.
The Endorsement: King Lifts Reynolds When She Needed Him Most
Flash back to 2017-2018. Kim Reynolds was running for a full term as governor after ascending from lieutenant governor. Steve King didn’t just back her—he went all-in. Reynolds named King a statewide campaign co-chair and proudly touted his endorsement. In a November 2017 press release, she gushed: “Congressman Steve King is a strong defender of freedom and our conservative values. He’s independent, principled, and is fighting the good fight in Washington, D.C. You never have to question where he stands.”
King delivered for Reynolds in the heavily conservative 4th District. She rode that support to victory in 2018. Their alliance was public, mutual, and mutually beneficial—classic Republican teamwork, or so it seemed.
The Betrayal: Reynolds Stabs King in the Back
Fast forward to January 2019. After years of King being smeared by the media for his blunt defense of immigration enforcement and cultural issues, House Republican leadership stripped him of his committee assignments over remarks questioning why “white nationalist” had become a slur. King’s enemies pounced. Enter Randy Feenstra, who announced his primary challenge against the incumbent.
Governor Kim Reynolds? She didn’t lift a finger to defend the man who had co-chaired her campaign. Instead, she publicly washed her hands of him. In an interview with WHO-TV, Reynolds declared she would “stay out of the primary” but pointedly noted King’s surprisingly close 2018 re-election as a “wakeup call.” Translation: She wasn’t backing King over Feenstra.
Prominent Iowa Republicans like Sens. Chuck Grassley and Joni Ernst followed suit and stayed neutral—abandoning the pattern of past support for King. Meanwhile, Feenstra raked in cash from the U.S. Chamber of Commerce, National Right to Life, the Republican Jewish Coalition, and other establishment heavyweights. He painted King as “caustic” and ineffective, precisely the line the D.C. and Des Moines insiders wanted to hear.
Steve King, the guy who had carried water for the party through thick and thin, was left twisting in the wind. The same Reynolds who once called him a “strong defender of conservative values” now stood aside while the machine dismantled him.
Feenstra: The Artificial Candidate
Randy Feenstra didn’t storm onto the scene as a populist firebrand with grassroots rage behind him. He was the safe, scripted alternative. A state senator from Hull whose district overlapped King’s, Feenstra resigned a powerful Ways & Means committee chairmanship to run full-time—signaling deep establishment buy-in. He outraised King dramatically and dominated his home turf, but the broader narrative was clear: this was the party clearing out the “problematic” incumbent for someone who wouldn’t rock the boat or make national headlines for the wrong reasons.
Feenstra’s campaign pitch boiled down to “effectiveness” over principle. He criticized King’s rhetoric while promising results—code for “we’ll keep the seat Republican without the drama.” National GOP groups poured in to protect the safe red district from any general-election risk. King, stripped of power in Washington, was portrayed as the reason the district lacked a “seat at the table.”
The voters in the primary bought it. Feenstra won. King was out. The establishment had its man.
Why This Still Matters: The Pattern of Artificial Republicans
This wasn’t about ideology—Feenstra and King both cast conservative votes. It was about control. Steve King represented the raw, unfiltered voice of the heartland that made the Republican Party a fighting force. The insiders—Reynolds, the Chamber, the national PACs—wanted someone more manageable. Someone who wouldn’t embarrass them on cable news. Someone “artificial”: manufactured by money, party machinery, and calculated neutrality from the very people King had once helped.
Fast-forward to today, and the irony is thick. Feenstra is now running for governor in 2026, positioning himself as the heir to the Reynolds legacy. Meanwhile, Steve King—still influential in conservative circles—has thrown his support behind a challenger attacking Feenstra as the ultimate establishment candidate.
The 2020 primary wasn’t a rejection of conservatism. It was the establishment’s successful coup against one of its own most outspoken warriors. Randy Feenstra didn’t earn that seat through pure populist fire—he was handed it after the party betrayed the man who had helped build their machine.
Iowa conservatives should never forget: when the insiders decide you’re too loud, too principled, or too effective at exposing the real threats facing America, they’ll find a “cleaner” replacement. Steve King learned that the hard way. The rest of us should learn from it before the same machine installs more artificial candidates across the country.
Online Provocateurs Try to Sabotage America First, Nick Fuentes, & the Groypers
Zach Lahn’s Win is a Populist Blueprint for America First Republicans
“Despite What You All Think”: Nearly $150 Million in New Water Commitments Follow Reynolds’ Defense of Iowa’s Record
Safe Elections By Any Means Necessary
Populist Wire is Back
“Despite What You All Think”: Nearly $150 Million in New Water Commitments Follow Reynolds’ Defense of Iowa’s Record
Zach Lahn’s Win is a Populist Blueprint for America First Republicans
Safe Elections By Any Means Necessary
