Sub-prime Bail Out

[tw]

Originally Posted by Griff

Did a Republican President just nationalize the housing market? For the record, the answer is yes.

If he didn't, then it would be obvious why throwing money at the rich makes the economy look good (short term) and results in massive economic revenge on that economy (long term). These are all symptoms of a George Jr who made the economy look good by throwing money at it. Nixon did same. So the economy took revenge many years later.

Eventually we will pay for government welfare to the rich. Fannie and Freddie are simply then next irresponsible entities to line up for free handouts. GM and other domestic automakers will demand equal welfare. Never forget the party line. Enrich those who are your campaign supporters (ADM, Halliburton, etc). Massive government deficit spending has been financed by China, et al who are now flush with dollars. So much for wiping out the balanced budget and then setting records for deficit spending. New record for government borrowing is something above $400 billion - probably higher. This was the budget that conservative (wacko) extremists said would be the first balanced budget. How could their political agenda be wrong? Reagan proved that deficits don't matter? Cheney said so.

Lehman Bros is going the same way a Bear Stearns. Even with Fed offering discounted money. Something like 39% of American mortgages are estimated to be non-performing (hopefully that number is erroneous). And yet the same administration also said there is no inflation - despite prices in grocery stores and gas stations.

Denial means welfare to the rich is alive and well. Best solution to these problems is bankruptcy. Bankruptcy - if applied early enough (if spread sheet fraud was not encouraged by George Jr's Harvey Pitts and his predecessors even in the Enron days) means jobs are saved and the problem (top management) is eliminated. Instead, George Jr's political agenda dictates protecting the problem who are also major campaign contributors. And yes, even Fannie and Freddie were major political fund donors.

Their conservative agenda is only good for America in rhetoric. George Jr's people will spend money everywhere to make themselves look good. Oh. The Federal Highway Trust fund surplus? That trust fund is something like one to two months away from no more cash. Where did the surplus go? Enron style accounting is justified by a political agenda that also says "deficits don't matter".

How curious that Clinton could be fiscally responsible. The party rhetoric says that only Republicans can be fiscally responsible. And yet both George Jr and Nixon spent money we did not have.