The Washington Post has delivered an exposé on the rampant corruption and waste occurring in the District of Columbia’s HIV/AIDs Administration. According to the Post, “the agency receives about $100 million a year, largely from the federal government, for prevention, medical care, housing, case management and support services.”
The Wall Street Journal reports that the Obama administration plans on spending $35 billion on state and local housing agencies to bolster lending to low- and moderate-income home buyers. The effort would come on the heels of other federal interventions to prop up the ailing housing market:
Republicans are all over the ACORN scandal and calling for an end to federal subsidies for the group. That would be a good step, but it’s not exactly going out on a limb and pushing for major budget reforms.
For the past couple of years the Department of Housing & Urban Development’s Federal Housing Administration (FHA) has been doing its best to re-inflate the housing bubble.
Last week I blogged on President Obama’s “stimulus” rally prop Henrietta Hughes — a.k.a. “the face of the economic crisis.” Ms.
The IBD has an excellent front page summary of the 1990s roots to the Fannie Mae and Freddie Mac disaster.
One issue IBD touches on is the ineffectiveness of the regulating agency OFHEO. OFHEO gave Fannie and Freddie a clean bill of health just last December.
One reason that having regulatory agencies is worse than having no suchagencies is the false sense of security provided to markets by such apparently off-base seals of approval.