Looks like big money mortgage financiers Fannie Mae and Freddie Mac are about to screw over every man woman and child, plus thier children and thier childrens children in the name of keeping our financial system strong. Thank god we have the best and the brightest minds in the world looking out for us in Washington.
Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee would be paid by taxpayers.
Government officials said that the administration had also considered calling for legislation that would offer an explicit government guarantee on the $5 trillion of debt owned or guaranteed by the companies, effectively doubling the size of the public debt.
Turns out these no doubt about it, in it for the money Corporations (sorry for using the C word) have sucked all they can from United States Citizens, then sucked some more and know want Uncle Sappy (US) to bail them out again.
Everybody is quick to point out that these companies are backed by the U.S. Government. This is a matter of opinion and framing by those with vested interests. turns out they are simply given a line of credit with the treasury for a measley $2.25 billion each. Freddie and Fannie lost over $11 billion in the last few months alone. This is not a backing but a safety valve, nothing more.
Let them fail! People make fun of their neighbors when they fail, calling them idiots and losers because they fall into the red for one reason or another. Businessmen often pride themselves on extinguishing the dreams of others spouting “It’s only Business” as they use the system to inflict harm on their brothers. The gap between rich and poor is growing everyday and setbacks like this would shrink the gap, however slightly that may be.
Anybody that has ever played a game such as Risk or Monopoly knows how hard it is to comeback from a great deficit. This is the type of event that is needed in such a scenario. Any child knows that changing the rules in the middle of the game is a good enough reason to quit. The fatcats in the money game have tilted the playing board in their favor for as long as the word finance has been around (probably longer).
If the market system truly works lenders will step in, if it does not work why is it the game that every American is forced to play?
I know, many of you will simply say I don’t get it, the problem is, I do.
It is fine to foreclose on one individuals dream, yet it is necessary to bailout those of wealth in the name of America.
