Rough Waters Ahead

Hard to believe how quickly our economy and nation has lurched toward socialism. The Fed and Treasury have agreed to create a NEW funding agency to buy the unvalued mortgages that the investments companies now hold. They are estimating the cost to you and me, Joe Taxpayer, will be $1 trillion dollars.

Since when did we as a country look to government to bail out our industries? I know it has been done in the past, but this is unprecedented. The amount and scale of the government intervention is down right scary.

What started this entire mess? Freddie Mac and Fannie Mae. Both of these 'quasi' governmental agencies pushed and coerced banks into making terrible loans to people who they KNEW could not afford to pay them. Then they sold them to investment firms, who in turn sold them to other investment banks. The head of these 'agencies' left after making over $90 MILLION in 6 years. He is now advising Obama's presidential campaign. Another VP from these failed institutions was going to head up Obama's VP selection process. These 'agencies' were tools of the Democrats in Congress and back to President Bill Clinton to FORCE the financial industry to loan to those who couldn't afford the loans in the first place. If they did not, then would have the force of the Federal Government on the back and were being 'racist' in their denials of loans.

Not that the Republicans are much better. Many killed the Federal Housing Act of 2005 that John McCain went to the floor to support. Three years ago he told the Senate if they did not put into effect any enforcement of this issue, we would face financial turmoil. Amazing how RIGHT he was. However, those Republicans who got money and this administration looked the other way. When the housing market was booming, no one cared about the LONG term implications.

This is one terrible situation created by poor ethics, down right greed, politicans exhtorting the financial industry and down right aweful decisions.

We are in store for a very very rough ride. Even with this latest bailout, the cost to us is hard to wrap the brain around. The governmental debt is mounting, and someone will have to BAIL them out soon.

Hold onto your wallets.