Trump’s economic illiteracy and disrespect of moral hazards have no bounds.
Putte Pimps Fannie and Freddie
Trump: Before I became President, “OPEC” kept Oil prices high. It wasn’t right for them to do that but, in a different form, is being done again — This time by the Big Homebuilders of our Nation. They’re my friends, and they’re very important to the SUCCESS of our Country, but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD. I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going and, by so doing, help restore the American Dream!
Trump Pushes IPO with Government Guarantees
- Historic stock sale: Reports in May 2025 indicated that Trump was “giving very serious consideration to bringing Fannie Mae and Freddie Mac public” with an initial stock offering. A potential IPO could raise billions of dollars.
- Government guarantee: While considering privatization, Trump has also stated that the U.S. government would “keep its implicit GUARANTEES” and retain its oversight of the mortgage companies.
- Seeking Wall Street input: In August 2025, Trump met with executives from major U.S. banks to discuss plans for potentially selling a stake in the companies.
- Unclear timeline: As of October 2025, Federal Housing Finance Agency (FHFA) Director Bill Pulte has confirmed that Trump has not yet made a final decision on an IPO or selected a lead bank for the offering.
- Calling for more homebuilding: On October 5, 2025, Trump made a post on Truth Social calling on Fannie Mae and Freddie Mac to “get Big Homebuilders going” to increase housing supply. He claimed that homebuilders were “sitting on 2 Million empty lots, a RECORD”.
- FHFA Director’s response: The director of the FHFA, Bill Pulte, responded on social media, indicating he was “on it,” but the specific actions the FHFA and the mortgage giants could take remain unclear to analysts.
Good Lord!
Trump wants to privatize housing but retain government guarantees and subsidize homebuilders.
Gee, what could go wrong?
Government should not be in the housing business at all. More explicitly, government should not be running any businesses.
Support for this idiocy on X is massive.
Look Who Wants In on the Deal
The Wall Street Journal reports Big Banks Woo Trump for Roles on Blockbuster IPO
Goldman Sachs Chief David Solomon was at the White House this summer pitching President Trump on why his bank should lead a huge coming deal: the initial public offering of mortgage giants Fannie Mae and Freddie Mac.
Midway through the presentation, Trump invited in a group of athletes from his council on sports and fitness. Solomon continued speaking as former professional wrestler Paul “Triple H” Levesque and golfer Bryson DeChambeau looked on.
It was a surreal meeting befitting what is perhaps the strangest IPO “bake-off” ever.
“Everyone wants to be on this,” one top bank executive said.
The CEOs of the country’s six largest banks—Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Morgan Stanley and Wells Fargo—have all made pilgrimages to the White House. They have courted Trump and others involved, including Treasury Secretary Scott Bessent, Federal Housing Finance Agency Chief Bill Pulte and Commerce Secretary Howard Lutnick.
Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Morgan Stanley and Wells Fargo are all expected to land some sort of role, people familiar with the deal said. But the banks are jockeying for the two lead roles, which come with bigger fees.
When Trump shared on social media what appeared to be an AI-generated image of himself ringing the New York Stock Exchange bell for the IPO of the “Great American Mortgage Corporation,” bankers chattered among themselves trying to figure out if he had lifted it from one of their decks.
It turns out the image came from Pulte, a person familiar with the matter said.
With lucrative fees and government guarantees, who wouldn’t want in?
Trump’s Takeover of US Businesses
- The government has a 10% equity stake in Intel (INTC)
- The government has a 15% equity stake in MP Materials (MP)
- The government has a 10% equity stake in Lithium Americas (LAC)
- The government has a 10% equity stake in Trilogy Metals (TMC)
- The government has aA “golden share” in US Steel Corporation (USS)
- After the launch of the $TRUMP memecoin, Trump’s wife Melania launched her own meme coin, $Melania on January 19, 2025
- Nvidia (NVDA) agreed to pay 15% of revenues from chip sales to China to the U.S.
- AMD agreed to pay 15% of revenues from chip sales to China to the U.S.
- Trump started a government website for prescriptions called TrumpRx.gov.
- Trump wants Fannie Mae and Freddie Mac to subsidize homebuilders
Government Knows Best
And Trump will not rule out taking Greenland by force and wants to make Canada the 51st state.
The cultists call this “winning”.
Just imagine the outcries if Biden did any of this.
Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Morgan Stanley and Wells Fargo are all expected to land some sort of role.
Will the big winner be the one buying the most $Melania coins?
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This article perfectly captures how AI-generated imagery continues to blur the line between reality and digital fabrication. It’s fascinating that a single post can spark confusion even among professionals who deal with visuals daily. Just like in creative industries where precision matters — for example, when photographing products on white background — authenticity and context are everything. The situation shows how easily AI tools can influence public perception and media narratives. It’s a reminder that critical thinking and verification are more important than ever in today’s visual culture.
I’ve been a mortgage banker for 39 years and sure hope to retire in two years. Hopefully the orange idiot doesn’t completely destroy the industry before I can get out but it’s certainly possible.
Switch “Corpoation” to “Corruption”, and the organization name makes a lot more sense. Waiting for the photoshopped picture to spread…
I support your government making investments in rare earth mining and processing for strategic reasons. Beyond that the government should just be streamlining and slashing red tape.
As for home builders the government should just enforce construction to code, run out the cowboys, deport the illegals and encourage the training of apprentices with free trade schools and apprentice wage subsidies to prevent a skills shortage.
More welfare for the wealthy.
This sounds like a variation of Obama’s Cash for Clunkers plan.
Obama’s plan created artificial scarcity which has punished everyone especially the young as many of those cars could still be working for someone these days. If this results in more supply, it could actually drive prices down, the opposite of CFC. Not defending it mind you, just not seeing the similarity at all.
Corporate welfare is not socialism but fascism. What would real socialism look like?
Socialism would entail the government increasing the supply of affordable housing directly. Consider (as a precedent) the very successful mass production of bombers and ships during WW II.
If housing affordability is a true national emergency, the government (example: FEMA) would collect RFP’s from the private sector for the mass production of standardized, rugged and no-frills housing units; test various prototypes; select the best units and builders; and assign units to meet demand on public land. The government would work with the private sector and local authorities to accomplish these goals, but the decisions and quality control would ultimately reside with government design and construction professionals according to Congressionally mandated criteria.
Trump’s approach (similar to LA’s) of throwing carrots and dollars at builders will only lead to a hodge-podge of more unaffordable housing for private profit at public expense, with endless delays, scope creep and NO economies of scale.
I’m not saying we need to do this, but if we want to stop fooling around this is the way it would be done. Capitalism works if the target market has money. The poor have no money.
Capitalism works regardless of how poor or rich the target market is. The problem is that Capitalism invariably becomes corrupted over the decades/centuries and boy has our flavor of it become corrupted. Some things kind of exist in a somewhat free market but most things do not anymore and the cronyism is simply galactic in scale.
Deficit Spending Treasury securities are purchased by the Federal Reserve with entries of FR bogus credit entries in Treasury accounts. Treasury uses the accounts to pay bills. Inflation is thus added to circulation.
The DS securities are then auctioned with the new securities for paying [roll-over] redeeming securities. The accounts are covertly exclusively handled by FRBNY. Ref. 31 CFR #375.3. The DS amount disappears. It cannot go to govt. All profit of the Fed legally belongs to govt. The accounts have never been audited.
Thus the Demos have limitless funds.
With all due respect, I think ‘moral hazard’ was thrown out of the window by the Fed, Treasury Dept. and Congress during the Great Financial Crisis.
He will slap a tax on unused lots to get them to build. Prices for real estate have to come down and increasing supply will do it nicely. If you are a young family this is great. If you are an oldie this is bad. If you have another feasible of way of getting prices down I would like to hear it.
Getting the GSAs out of the mortgage business will result in prices coming down and increase supply more nicely.
They don’t build starter homes. They build McMansions that no one can afford. If they can afford it, they don’t want the cheap shit known as McMansions.
All parties in DC are guilty , not just red team or blue team, so much noise is disgusting
The only difference between Socialism and Crony Capitalism is Republicans believe in Crony Capitalism.
Meh. This stuff is more socialist than anything the dems have been proposing.
This is Italian facism (Mussolin) pure and simple. People need to read up on history from 1925-1940.
Conservatives have long favored welfare for corporations, while a kick in the teef of the proletariats is about as much of a handout as they will authorize.
Calvin Coolidge said “the business of America is business.”
What would America be like if business collapsed? In the 1930’s, unemployment spiked to 25%.
Currently, in July, anti-business California had the highest unemployment rate, at 5.5%. Democrats, who run California, are very much into government entitlements and it is not turning the state into a paradise. It has become counterproductive.
“Trump wants to privatize housing but retain government guarantees and subsidize homebuilders. Gee, what could go wrong?”
I agree 100%, but the problem is that we now live in a world where the government WILL DO ANYTHING to keep big banks / investors from losing their shirts. Why? Well, that’s very simple. With $38T in treasuries floating around, systemic risk abounds everywhere you look.
The reality is that, while the FDIC hasn’t moved on increasing the $250K limit, the Fed is going to backstop EVERYTHING. They proved this with the SVB et al bailout via the BTFB that came out of nowhere. The bubble has to keep inflating, otherwise we’re screwed, which will come one day. But when it comes, it’s going to be a global reckoning.
Until that time though, I agree that all TACO is doing to playing shell games. But it’s not just Trump. Most everyone in Congress except for the Massie’s, Paul’s & Roy’s are going to play along with the inflate the bubble Russian roulette.
Yes you are correct, no moral hazard
“I agree 100%, but the problem is that we now live in a world where the government WILL DO ANYTHING to keep big banks / investors from losing their shirts. Why?”
It’s because the big banks/investors fund the campaigns of elected officials and decide who is going to be elected. Really just as simple as that. And the Supreme Courts Citizen’s United decision made sure that it stays that way. Thanks “conservative judges”!
He may run for governor of Oregon after this term. Perfect program fit.
Well they are a Federal National Mortgage Association. They are also sponsored by Our Government, to Buy and Guarantee, Mortgages from Lenders. So in essence, I guess, We The Taxpayers Backstop This Association. It appears there charter is for Particularly for Affordable Housing.
New deal:
– Government guarantee: While considering privatization, Trump has also stated that the U.S. government would “keep its implicit GUARANTEES” and retain its oversight of the Banks & Mortgage Companies.
> I don’t like the sounds of Banks & Builders, who have Money and lots of it, when compared to the Average American Taxpayer, backstopping there foray into the Housing Markets WITH Us as there backstop!
>> IMO The Government is supposed to be more of a watchdog group looking after and for The American Citizens (Taxpayers). They are supposed to Monitor Banks to be sure they stay solvent, and don’t go under. They do not belong in bed with any of them. They get paid by the people for the people I thought, what’s with the Home Builders jumping in? Not Cool! I don’t trust what they will do, and do home prices drop a whole lot as a result of this? What do Home Buyers Get? Ultra Low Mortgages, Low Home Prices? A Guarantee Taxpayers won’t pay for there Losses? Are we going to be backstopping Casinos Next? Are Liquor Stores insight as needing help by the Taxpayers too? How far do they go, once they rip off the “No Way” Band-aide???
All good points, but the bubble has to keep inflating. TACO & the rest of Congress are simply grasping at straws to keep the next recession at bay.
True, but with all the illegal (and legal) immigrants they want to deport, where are they going to find enough construction workers to move the needle on the economy?
There are a lot of able-bodied persons who are going to have to reconsider their career paths. However, this isn’t going to happen overnight, and sometime after 2026, Trump is likely to push for some sort of immigration reform that’s going to give illegals some sort of work permit that doesn’t create a path towards citizenship.
That is what most other countries do. Work Visas
I used to get impatient with leftist idiots who accused Republicans of fascism, but now we have a Republican president, with zero resistance from the GOP, embracing the corporate state model of El Duce. Silly me, I thought it was the left that would get us there.
trump and Mussolini are-were both womanizers!
funny coincidence!!
And their first names both have 6-letters in them. What a coincidence!
So the leftist “idiots” were correct then. Probably because the old adage “fascism is capitalism in decline” is a very true one, if lacking nuance.
In my opinion the pipeline from Reagan’s “we don’t need a federal government!” idiocy to soulless corporate Democrat misspending to populist fascist takeover is a pretty easy to follow one. No regulations and no rules meant that businesses were allowed to offshore and screw Americans, Democrats (who are definitely not leftist in the least) and Republicans both encouraged this with open arms, and it became very easy for a fascist type to swoop in after they’d cored the nation out. They killed this nation, Trump is just the vulture feeding on its carcass.
No, the leftist idiots weren’t correct: they denounced as fascism anything that defied their collectivist religion (especially liberal capitalism) while embracing the statist authority that characterizes fascism and socialism. I doubt Dems have anything against Trump’s economic schemes, except for the identity of the thugs in charge.
Yes, Trump is not like Hitler, but runs very close to Il Duce.
Mary Trump, Don’s sister, stated openly that the book “La Mia Vita”, (My Life) authored by Benito Mussolini is one of the Donald’s favorite reads.
Bush’s Treasury Secretary, Hank Paulson, overrode the explicit language of Fannie and Freddie Mac mortgage-backed securities (“is NOT backed by the full faith and credit of the United States government”) and back-stopped bond investors. Obama did the same for GM creditors. Rule of law is just a slogan in the U.S. This Trump plan is the old corruption on steroids. At least democrats’ corruption of Fannie Mae was usually limited to using it for political patronage so their partisans could skim off a few tens of millions of dollars.
those were actual finance system-ending emergencies. yes both parties are corrupt but MAGA is on another level altogether.
Well, he said he’d run it like a businesses. Business make profit. He’s making a profit. It’s what everyone seems to have voted for. Get over it (*sarcasm*. Mostly. Not entirely.)
As an example, I’m fine with NVIDA paying the government “extra tax” on all their gargantuan profits. That sounds like a good deal to me.
Does this mean we are all employees?
Does retirement even exist under a business model?
What happens when someone gets fired? Are they killed off?
= gold up 3pct, 4100$
most people dont understand meaning of this.
normally ON SUCH SAYS GOLD AS fear factor must fall down cause it appears
LESS tensions between china and USA!
=====
but MARKET FIGURED OUT TRUMP doesn’t have any cards against china, and
only way out is money PRINTING…
THUS, GOLD IS UP!!
= normally ON SUCH DAYS=
Trumpdani strikes again
It’s kinda like an oligarch helping out other oligarchs.