Chalk up another victory for American "nanny government." The Fannie/Freddie bailout, which we've railed about recently here on Weber County Forum, just cleared the U.S. Senate by a 72-13 vote. All that's lacking now is the president's signature. We incorporate CNNMoney's lead paragraphs below:
NEW YORK (CNNMoney.com) -- The Senate on Saturday overwhelmingly passed a landmark housing bill that will offer up to $300 billion in loans for troubled homeowners and establish a government rescue plan for mortgage finance giants Fannie Mae and Freddie Mac.This bailout legislation is so knuckle-headed that even the Voice of Wall Street, The Wall Street Journal, condemned it in a strong editorial yesterday, rightly labeling it the "scandal" that it is.
The House passed the bill on Wednesday just hours after President Bush reversed his long-standing vow to veto the bill. Bush is expected to sign it soon.
The legislation, one of the most far-reaching housing bills from Congress in decades, marks the centerpiece of Washington's efforts to address the nation's housing meltdown.
Hold on to your wallets, folks. If you think inflation is bad now, just wait. You ain't seen even the beginning of it yet.
In closing, we've embedded an instructive YouTube video below, featuring an interview with commodities guru Jim Rogers, who provides a clear and succinct analysis of the economic downside to this unprecedented act on the part of Congress, to make U.S. taxpayers full partners in the banking industry melt-down mess:
Our readers' ever savvy comments are invited as per usual.
6 comments:
And, just to keep with the cheery tone of this morning's post, the FDIC has just closed two more failed regional banks thanks to the mortgage meltdown. Link here.
Yessiree Bob, I sure am glad we have a CEO president from The Party of Business in office. They've managed things so well....
Disney had a great cultural comment about the "economics meddlers" in congress following the great depression years.
And yes... "Disney's Fantasia" was highly political.
A "fantastic video clip from Fantasia.
Can we learn, generation to generation, from our past national economics mistakes?
I doubt it.
Wir sind alle Sozialisten jetzt!
It is sickening to listen to the stupidity of the young people reporting on CNBC who know nothing about the financial crisis we are in.....or what has caused it.
They don't have a clue as to what they are talking about.
I for one think that the doubling of our national debt by 5 trillion dollars by Congress in order to bail out 400,000 home owners and Fannie Mae and Freddie Mac is the stupidest thing I have seen in my lifetime and I have watched Congress do a lot of stupid things.
Congress is also responsible for having created this financial crisis because they have not been doing their job of oversight. And that includes Utah's Hatch and Bennett.
Disgusting!
Exactly right, Dorothy. Here's one of the better exchanges between the highly investment experienced Rogers, and the CNBC airhead... Bertha.
Bertha: "... There's an argument to be made that some of this is a failure of confidence, and a lot of folks would say, that people like you, the short-sellers, are talking down these companies, and out there saying they're insolvent, when in fact they have reserves that are above their mandates."
Rogers: "Oh please, Bertha. I would urge you to pull out their, uh, balance sheets. If you think that Fannie Mae and Freddie Mac are solvent, then I urge you to get a balance sheet and examine it, or get somebody who can explain it to you. Fannie Mae is not solvent; I mean even [former FED Governor William] Poole, of the Federal Reserve, has acknowledged that they're not solvent.
If you're blaming this on short sellers, then you should be... have another job."
Too funny.
What is the real reason behind all these gargantuan bailouts for the fraudster banks and GSE's? We'll tell you what this about. This is about saving the dollar from sudden collapse, stopping the many trillions of dollars held by foreigners from returning to our shores and creating hyperinflation reminiscent of the Weimar Republic, and simultaneously violating all sense of moral hazard by saving the fraudsters at our expense while keeping their cost of funds low in light of the fact that the fractional reserve banking multiplier has collapsed due to the rampant fraud, lack of regulation and lack of transparency that has frozen credit markets. That is what this is really all about. The ultimate goal is to consolidate more power into the hands of a few by moving the US inexorably closer to a corporatist, fascist state, but the devastation they intended to wreak on everyone else is now coming back on them and they are trying to save the system, and themselves in the process, so that there is something left to consolidate when the dust settles. We believe that the Illuminati have destroyed themselves, and their "Chaos" henchmen, in the process of destroying us, and that their bid for a corporatist, fascist state will ultimately fail. Only their gold and silver failsafe hoards will rescue the head Illuminists from financial ruin and even bankruptcy. They really blew it this time. Their diabolical plans have been pushed back by half a century.
Super Losses, Super Layoffs, Super Bailouts
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