Monday, September 8, 2008

Bailing out Freddie Mac and Fannie Mae

Freddie and Fannie are the nations biggest money laundering operations. If they failed, all kinds of garbage would come spilling out, and that just can't happen.
Our national debt is not money that our country owes to itself or a meaningless number like a lot of people think, it's actually the amount of money that the U.S. owes overall to other countries in the world. Each year the U.S. government borrows billions from other countries like china, Russia and many from the E.U. and pretty soon the interest payments on our loans are going to exceed the GDP. The question is not whether our economy will fail, but rather how the rest of the world will react when we start defaulting on our debts to them

1 comment:

Bob said...

I think that the feds did the right thing today by bailing out Fannie Mae and Freddie Mac.
Why not help out and find a remedy for the worst housing slump the nation has suffered in decades?
Why not help out people who most desperately need help? Sure it will help out the banks as well, but so what? Are you aware that about a half of million homeowners are at risk of losing their homes to foreclosure? And that Fannie Mae and Freddie Mac, owns or guarantees nearly half of the nation's mortgages and which now have a rescue plan. So what’s so damn terrible about that? Are you so damn stuck on stupid and your blinders are on SO tight that you won’t agree the Richest country in the world won’t help it’s people in time of need. This plan The bill would help an estimated 500,000 homeowners avoid foreclosure by allowing them to refinance into lower-cost mortgages insured by the Federal Housing Administration. To qualify, borrowers must have a relatively high level of debt to income, use their homes as primary residences and agree to share any profits from any eventual resale with the government. And the lenders must agree to write down the loan principals. And you think that’s so bad?
Ok, it Bush’s fault that the banks and the money hungry mortgage brokers sold homes to the wrong people the people that couldn’t afford them in the first place. Lenders, banks, investors, mortgage companies and borrowers - have to share the responsibility for that mess.
The market went up 290 points today on that news. Good thing? You bet it was.