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.
Iowa
Rob’s House of Sand Collapsing in Bid for Iowa Governorship
Published
3 days agoon
September 8, 2026
Iowa is hungry for a real populist. Not another consultant-built “outsider.” Not another man in Carhartt who talks like a neighbor and governs like a donor list. Someone who will put citizens first on the border, keep the Second Amendment intact, break the two-party racket instead of feeding it, and stop treating farm families as a costume.
Rob Sand has spent a year auditioning for that job. He asks Republicans to raise their hands and then claps for them. He quotes Scripture. He talks about bowhunting, pizza, and “not redder or bluer, but better and truer.” He tells rooms he hates the two-party system. It is a polished performance of the candidate Iowa actually needs.
The problem is the performance keeps colliding with the paperwork.
The Independent Who Can’t Stop Being a Democrat
Sand is not a mystery independent who wandered onto a ballot. He is Iowa’s only statewide Democrat, running as the Democratic nominee for governor after no other Democrat qualified. He interned for Tom Harkin. He has backed Howard Dean, Hillary Clinton, Joe Biden, and Kamala Harris. In college he called himself “extremely liberal,” and he now says his values have not changed — only that “the parties may have moved.”
That last line is the tell. If your values never moved, the independent branding did.
He still says the quiet part out loud when he thinks the room is friendly. At a Grundy County town hall he explained party registration like a man who had to pick a locker: “I am a Democrat because when I realized that I had to pick a party in order to vote in a primary, I did so.” Then the theology: Jesus is for the little guy, and the Democratic Party “at its best” is too.
On X in October 2024 he put it even cleaner: “I’m mostly a Democrat because of my Christian faith, not in spite of it.” Critics who saved a later, more explicit “I am a Democrat” post say that one disappeared. Whether the deletion was cleanup or panic, the pattern is the same. The brand is independent. The confession, when it leaks, is partisan.

A populist does not need to hide his tribe. A marketer does.
Follow the Money, Not the Town-Hall Applause
Sand’s campaign loves small-dollar language. Teachers, nurses, $10 checks, all 99 counties. Some of that is real. So is the other ledger.
His wife, Christine Sand, is CEO of The Lauridsen Group, a global agribusiness and nutrition conglomerate built on livestock, dairy, feed, and animal-byproduct processing. Since 2024, Christine, her parents, and her brothers have poured on the order of $11.5 million into his race. That is not a bake sale. That is a family office writing the down payment on a governorship.
Then the coastal and institutional money arrived: Reid Hoffman of LinkedIn for $250,000; the Democratic Governors Association for $2.5 million; AFSCME, IBEW, the Iowa State Education Association, Fred Hubbell, Illinois Gov. J.B. Pritzker. Transparency USA filings show Sand’s committee has sent more than $1.4 million to the Iowa Democratic Party. Gazette reporting put the weekly party checks at $675,000 in just over two months in spring 2026; later coverage had the campaign’s party transfers around $750,000 as he shared a stage with DGA chair Andy Beshear.
So the man who says the two parties are private clubs starving independents is one of the Iowa Democratic Party’s largest cash sources. He slams the duopoly on Tuesday and funds its ground game on Wednesday. That is not rising above the system. That is owning a floor of it.
A populist campaign can take working people’s money. It cannot take Silicon Valley, national party PACs, public-sector unions, and an in-law agribusiness fortune, then lecture Iowa about insiders.
“Hallmarks of an Iowan” — If You Crossed the Line
On immigration, Sand talks like a pastor and governs like a sanctuary brochure.
He will concede that the Biden border was a mess and that he supports legal immigration. Then the policy slides. At town halls he has argued that people here illegally who work, pay taxes, and lack a criminal record should not “feel unsafe” in Iowa. He called the deportation of a West Liberty construction worker who showed up for an ICE check-in “wrong. Period.” He quoted “welcome the stranger.” He has said the traits of people here without legal status — working, paying taxes, treating neighbors well — “are the hallmarks of an Iowan.” He even floated “some kind of medicine” for entering illegally, then waved it off as a federal question.
That is not border realism. That is amnesty with a hymn attached.
Populists are not confused about this. A nation that will not enforce its line is not compassionate. It is a labor market for employers who prefer a workforce that cannot vote, cannot complain, and cannot easily leave. Iowa already lives with the costs: schools, hospitals, housing, wages in meatpacking and construction. Sand’s answer is to treat presence plus a paycheck as citizenship-adjacent, while staying slippery on whether a Governor Sand would keep Iowa cooperating with ICE. Republicans have pressed that question for months. The dodge is the answer.
Working Iowans who waited in line, or whose kids compete for the same apartments and overtime, are not villains for wanting the law enforced. Calling non-criminal illegal presence the “hallmarks of an Iowan” tells them their citizenship is a vibe.
The Bowhunter Who Won’t Carry the Second Amendment All the Way
Sand’s hunting biography is the campaign’s favorite camouflage. Decorah kid. Fox and Club. Ruger 10/22 at 14. An 870, a Super Black Eagle, a couple of SIG Sauers. “I like guns.” “I’m a different kind” of Democrat.
Iowa is not a may-issue museum anymore. It moved from discretionary sheriffs to shall-issue, then to constitutional carry, then to a state constitutional amendment putting gun restrictions under strict scrutiny. That is the settlement rural Iowa already made.
Sand will not go there. Asked whether an Iowa permit should be enough to carry in schools, he said no. The Daily Signal, citing his opponent’s research, reports he has backed stricter controls including may-issue discretion — the old system where a bureaucrat, not the Constitution, decides whether a law-abiding adult may carry. He owns guns. He does not want Iowa’s carry regime to stay as free as Iowans voted to make it.
That is the dual nature in one frame: blaze orange for the photo, permission-slip politics for the statute book.
The Little Guy With a Brown Degree and a Culture-War Veto
Sand sells himself as the anti-culture-war candidate who will “get state government out of the culture wars” and veto the bills he doesn’t like. Convenient veto. The fights he wants to retire are the ones his coalition already lost with Iowa voters: school choice he opposes, public-school books he does not want restricted, abortion positions his critics say include late-term permissiveness, and a record of treating sex-and-gender fights in schools as something a governor should refuse to touch.
You can dislike cheap culture-war content and still notice the pattern. “Leave it alone” usually means leave the last progressive settlement in place. Parents who wanted boys out of girls’ sports and explicit material out of elementary shelves were not asking for a sermon about polarization. They were asking for a governor who would not gaslight them.
A populist takes those parents’ side without apology. A brand manager changes the subject to singing “America the Beautiful.”
Why the Costume Works — and Why It Shouldn’t
Give Sand this: he diagnosed the market. Iowans are exhausted by party churches. Independents are a third of the state and locked out of closed primaries. People will clap for anyone who talks like he works for them instead of a color. His auditor years — prosecuting corruption, hiring a Republican and an independent into senior roles, getting his own office kneecapped by the legislature after he found misspent money — are the strongest parts of the resume. Those facts are why the costume almost fits.
Almost is the word.
The populist Iowa needs would not run as a Democrat while denouncing parties. Would not wire hundreds of thousands, then millions, into the Iowa Democratic Party. Would not take Reid Hoffman and the DGA and call it a people’s campaign. Would not let an industrial-ag family underwrite the bid and then talk about insiders in Des Moines. Would not tell a packed room that illegal presence plus a job is the hallmark of an Iowan. Would not hunt on Saturday and flinch from constitutional carry on Monday.
Sand is what the professional class builds when it studies populism the way a focus group studies a beer commercial. The plaid is real. The bow is real. The piety is rehearsed until it sounds like conviction. Underneath is a durable Democratic operative with a family fortune, a national party apparatus, and a set of positions on sovereignty and arms that Iowa already rejected.
A house built on sand looks finished until the weather changes. November is weather. Iowans should look past the town-hall sing-along and ask the only question that matters in a populist year:
If he has to hide the D, hide the donors, and sand down the record to look like the man we need — what does that tell you about the man he is?
Zach Lahn is not running a standard Republican campaign against Iowa Auditor Rob Sand. He is running a fact pattern: who pays, who owns the land, who gets the tax break, and whether Sand’s moderate act matches the record.
Lahn won the June 2 Republican primary as a first-time candidate, beating U.S. Rep. Randy Feenstra — the sitting congressman who had President Trump’s endorsement — by less than a point. He did it on an Iowa First message aimed at agricultural monopolies, out-of-state farmland buyers, water quality, cancer rates, data-center subsidies, and property taxes. Trump later endorsed him for the general election. The primary already showed the argument travels.
Sand is the Democrat in the race, the only member of his party holding statewide office, and the front-runner in recent polling. A Suffolk University survey conducted August 20–23 had Sand at 48 percent and Lahn at 44 percent among likely voters. Emerson in early August had Sand 48, Lahn 43. Sand has also built the larger war chest. Campaign reports put his haul near $20 million, with about $18 million on hand after a midsummer filing. The Democratic Governors Association gave him $2.5 million. A large share of the early money came from his wife, Christine Lauridsen, and her parents. Lauridsen is CEO of the family-owned Lauridsen Group, a health-and-nutrition company with annual revenues in the hundreds of millions. Since 2024, she and her family have put more than $10 million into Sand’s political operation.
That is the first fact Lahn keeps putting on the table. Sand campaigns as the auditor from Decorah who asks Republicans to raise their hands at town halls and talks about making Iowa “better and truer, not redder or bluer.” He has said he would not want Joe Biden or Kamala Harris to campaign for him. The donor list is not a small-donor auditor campaign. It is family industrial money plus national party money, wrapped in a retail-politics brand.
Lahn’s second fact is the national left. Sand has been endorsed by Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez. On the Ruthless podcast in July, Lahn said Democrats “are realizing that their ideas don’t sell,” so “they have to pretend to be somebody they’re not.” Sand’s public platform includes ending Iowa’s privatized Medicaid system, making data-center operators pay more, raising the minimum wage, and adding accountability to school-voucher spending. Those items have local support in some counties. They are also standard Democratic governing aims. Lahn’s case is that Sand is running the second as if it were the first.
The auditor title is Sand’s strongest credential. He was a public-corruption prosecutor in the attorney general’s office and has been state auditor since 2019. He says he uncovered more waste, fraud, and abuse in a term than any Iowa auditor before him, and that he kept a Republican and an independent in senior roles.
Lahn has refused to treat the title as a closing argument. His campaign ran an ad using KCCI language about millions in state funds and an auditor’s office that “took no action.” Sand called the ad “fundamentally dishonest.” The station said its anchors’ words were taken out of context. The judicial branch has said a court-debt misallocation could not have been detected by an audit and that no money left public accounts. Lahn’s answer in Britt on August 1 was direct: “They’re not false. He is not doing his job.” The dispute is now part of the record. So is Lahn’s refusal to grant Sand a pass because the office stationery says Auditor.
Sand’s campaign has answered with biography. Lahn grew up near Sioux City and bought his family’s Belle Plaine farm, a property he describes as established in the 1900s. He also built a life in Kansas: Homeplace Ventures, the Wichita private school Wonder that he and his wife helped found, a residence there, and Kansas votes in 2018, 2020, and 2022. He changed his Iowa voter registration more recently and has used a personal plane to travel between the states. Sand’s line is that Iowa has “full-time problems” that will not be solved by a “part-time Iowan.” Democrats have called him a carpetbagger.
Lahn calls those attacks personal and says he is a sixth-generation Iowan who will live in the state full-time if elected. The residency fight is real. It is also the fight Sand prefers, because it is not about packers, nitrates, land funds, or who writes Sand’s checks.
On policy, Lahn has kept the populist list specific. He has pledged to break up what he calls big-ag monopolies and get farmers a fair deal. He has linked Iowa’s high cancer rates and water problems to corporate agriculture and said the state should find out what companies knew and when. He has called for raising taxes on AI data centers — he has used a 500 percent figure — and cutting property taxes for residents. He has said data-center power use and surveillance cameras such as Flock should be regulated at the state level. He has backed education savings accounts while saying the governor must also be “the number one advocate” for public-school children. He is aligned with the Make America Healthy Again network that endorsed him in the primary.
Sand has moved onto some of the same terrain because he has to. He has sat with ethanol producers, campaigned with former Gov. Tom Vilsack on farm policy, and called a Trump administration deal to lower the cost of imported beef “a blow to Iowa farmers and cattlemen.” He has talked about ending privatized Medicaid, taxing data centers, raising the minimum wage, and auditing voucher schools that take public money. The overlap is the point of Lahn’s attack. If the Democrat is now using farm-and-ratepayer language, it is because Lahn made those the price of admission.
That is the exposure. Sand has the polls, the cash on hand, and a practiced moderate pitch. Lahn has the primary scalp, the anti-monopoly message, and the simpler question about who is funding the man across from him. Iowa’s governor’s race is now being fought on Lahn’s ground — land, water, cartels, data centers, and whether a candidate’s story matches his bank account. Sand can win it. He cannot pretend Lahn made the subject up.
Politics
James Fishback Can Stop Byron Donalds From Stealing This Election
Published
4 weeks agoon
August 15, 2026
James Fishback is the only candidate who can galvanize a real Florida First movement for the people. Byron Donalds is trying to steal the nomination like a thief in the night—money, endorsements, debate refusals, and institutional muscle—while the actual fight for ordinary Floridians gets sidelined.
Fishback, the 31-year-old fourth-generation Floridian and outsider, is running straight at the core problem: Florida is being priced out from under the people who live here. He is the only one treating that as the central issue instead of a talking point. Ban new AI data centers that drive up power and water costs while delivering almost nothing back. Stop private equity and corporate buyers from vacuuming up single-family homes so young families can actually own instead of rent forever. Eliminate property taxes on homesteaded homes for residents while leaving them on vacation properties and non-residents. Put Floridians first over donors, tech developers, and the permanent political class. That is what “populist” means here—ordinary people over the interests that treat the state as a product.
The energy is real. Young voters are showing up for him in ways the other campaigns cannot match. Campus events, packed small venues, early turnout among under-40s. They hear someone who sounds like he understands the cost-of-living pressure and the sense that the state is being sold out. No one else in the race is converting that frustration into a coherent Florida First agenda the same way.
Donalds has the Trump endorsement, the fundraising advantage, and the party machinery. He leads the polls. That is the reality. The way he is running is the problem. He refuses debates. The party set thresholds that only he meets so no official debate happens. Opponents get treated as illegitimate rather than answered. The strategy is clear: close the race with money and institutional power before the people-first argument ever gets a real hearing. That is how you steal an election in the dark—win the process while the substance never has to face the voters who are actually struggling.
Fishback is the only candidate forcing that substance onto the table. The rest of the field is counting on voters not noticing until the primary is already decided. The question now is whether Florida Republicans want a nominee who leads the movement for the people who live here, or whether they will accept the quiet, well-funded path that treats that movement as an inconvenience.
Rob’s House of Sand Collapsing in Bid for Iowa Governorship
Why Donald Trump Is the Greatest President in American History
Populist Wire Endorses David Jolly: Why Byron Donalds Doesn’t Deserve to be Governor of Florida
Zach Lahn Uses Populist Rhetoric To Expose Rob Sand
Now Iowa is Watching the Water
Now Iowa is Watching the Water
James Fishback Can Stop Byron Donalds From Stealing This Election
Why Donald Trump Is the Greatest President in American History
Data Center Resistance Reckoning Against Tech-State
