Denny’s Daily Zinger: Investor Creates Bogus PAC

United for American Home Ownership PAC website.

United for American Home Ownership appeal.

Last week, a story broke about the Senate Banking Committee looking to phase out Fannie Mae and Freddie Mac, those government-sponsored agencies that guarantee home mortgages.
Fannie and Freddie backed the home loans of millions of borrowers with lousy credit histories. The result: the $817 billion bailout by the federal government back in 2008.

Enter Bruce Berkowitz
Berkowitz of the Fairholme Capital Management Mutual Fund has big bucks invested in Fannie and Freddie. If the two disappear, so will Fairholme’s money.

So Berkowitz has financed a coalition of the frightened.

Its mission: To keep Fannie and Freddie alive. The website—United for American Home Ownership—went live last Tuesday, along with full-page ads in The New York Times and The Wall Street Journal.

The public is made to believe this kumbaya political action committee is about Chevrolets, motherhood, apple pie and love of home ownership and family.

However, no mention is made anywhere of the lurking Bruce Berkowitz and Fairholme Capltal—desperate to cover their asses.

Particularly galling is the paragraph:

United for American Homeownership (UAH) is calling on Congress to help the American economy continue its comeback—to keep America’s housing market in the hands of professionals, not politicians and the big banks. [Boldface mine.]

Keep it “in the hands of the professionals” who damn near destroyed the world economy?

I may barf.

Takeaways to Consider

  • United for American Homeownership is a big fat lie.
  • “Nobody ever went broke underestimating the intelligence of the American public.” —H. L. Mencken

Denny Hatch ‘s new book is “Write Everything Right!” Chip Fichtner writes, “Denny: Almost through it. Great as always. Question: With any good book I like to buy a dozen and give to friends and employees. Should I buy direct through you or from Amazon?” Click here to download (opens as a PDF) and read the first three chapters FREE. The title is also available on Kindle. Reach Denny at

Denny Hatch is the author of six books on marketing and four novels, and is a direct marketing writer, designer and consultant. His latest book is “Write Everything Right!” Visit him at

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  • Meg Nugent Hodges

    My thoughts on this turn to Thomas Jefferson:

    "An educated citizenry is a vital requisite for our survival as a free people."

    My husband (with whom I shared your piece over lunch) is more inclined to align with Mencken as you have, but something else he said:

    “The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.”

    Libertarian + Paleo-anarchist = no dull conversation at the dinner table.

  • FInish the Stroy

    Denny, Please complete the story. Which political party had tried throughout the late 1990’s and early 2000’s to slow the growth and return some level of credit qualification to Freddie and Fannie, and which opposed any increased regulation? Which political party does Bruce Berkowitz make his donations to? Which PACs, other than his newly created UHC?