Actually, more correctly: Phony Mae and Fraudie Mac.
What happened to the free market conservatives always talk about? Or government regulation that liberals talk about?
Why not let the housing market correct? Perhaps the poor could actually afford a house, if prices dropped enough. At least those of us who saved our money instead of “shooting up” with the drug called “credit” would be better off.
And what do those of us who saved instead of borrowed get? Our savings will loose buying power due to the ultimate drop in the dollar’s value due to this bailout.
This bailout is to save the ill gotten gains of the financial bankers, who buy Ferraris when they get their bonus check every year. And it is to save the foolishness of the middle class that used their houses as piggy banks.
A sign that things are being straightened out will be when the tax deduction for interest on home buying is repealed. That would stop the use of homes as a piggy bank. But you will never, never see that level of reality.
Remember the dollar is not backed by gold, it is backed by nuclear weapons. But the day will come when they will be useless as the U.S. economy falls behind.
One of the most telling statistics that I recently heard was that the level of exports from China had dropped a significant amount due to the slowing of the U.S. economy, BUT the production had only dropped by half that amount. In other words the Chinese economy itself is supporting China’s production more and more. And India will become a significant market for China. The U.S. will become less and less relevant in the world economy and will fall as so many civilizations have before.
- kathie :bowdown: