DRAIN THE SWAMP

The Great Depression of 1929 had struck America hard but it also affected Germany. 1931 was the turning point from an economic crisis to a currency crisis in Germany. According to the book “Made in Germany: the German currency crisis of July 1931”, it was not caused by a banking crisis, even though there had been a run in some banks before, and it was primarily domestic in origin, that is, in a period of turmoil, the politicians make things worse. Like so many other countries, the German government's budget went into deficit as the recession progressed. The financial community worried constantly about the creditworthiness of German bonds. Reserves of foreign currency is a measure of the creditworthiness of a country and its bonds. The accumulation of foreign reserves can be seen as collateral, which is being used for attracting foreign investment. Therefore, foreign exchange reserves add to financial security. There are three ways to accumulate foreign reserves: ...

The next comment has been submitted to FHFA upon input requested to interested parties regarding the “2018-2020 Enterprise Housing Goals Proposed Rule” and I will submit the same comment on every initiative related to FnF’s Public Mission. Dear FHFA’s representative, As a common shareholder of Freddie Mac, I’m an interested party on this topic. Because the government is not fulfilling its obligation under the Charter, I urge the FHFA to not abide by the Enterprises’ obligations either, regarding the Public Mission. I’d like to denounce that the lawmakers, politicians and officials are acting pretending that the operating system of their Charter or “Spirit of the Charter” doesn’t exist. Every generation of lawmakers introduce an amendment into their Charter to curtail the Spirit of the Charter: Fannie Mae and Freddie Mac were chartered by Congress to fulfill a Public Mission (affordable housing, to serve underserved markets, countercyclical role in the secondary market, ...