President Bush once again gave a talking point to the Democrats with his decision to bail out Freddie Mack and Freddie Mae. The whole world gave a sigh of relief while thinking Americans cursed under their collective breath, "not again:!
Our government will guarantee the debt held by foreign creditors but for the American worker who paid into Social Security for forty years will have to take "reductions" in benefits, and face an already insolvent program that will only get worse if the recipients are not culled! This is insane!
The bail out appears to be for the benefit of two Countries that are if not enemies, at least a threat to our way of life. China and Russia. Japan and of all places, the Cayman Islands. Home to more bank laundering than the Swiss!
Since 1994 when the Chinese had 197 million invested in our mortgage giants. They have increased their investment to 1.3 TRILLION dollars. They practically own the "FREDDIES"!
Being a life long hater of Communism, I have the inclination to let the chips fall where they will, and if the Chinese Communists and the quasi- Communist Russians take a financial bath. So be it! And without efforts to keep up with China and India, some countries, including the USA, may see further erosion of their export shares and high-tech manufacturing sectors.Why help their quest for world power?
Many Americans lost a considerable amount of money in the 2002 stock market "mini"-crash, caused by a bear market correction and the accounting manipulation scandals, and no one in the government made good on their loses. My children are all paying into the social security fund(it is not a trust fund). and they will probably never see any benefits from it, because their are too many free loaders and illegals dipping into it via medicaid and other corrupt welfare programs.
In a news conference today, Secretary Treasury Secretary Henry Paulson said the government has three objectives: "market stability, mortgage availability and taxpayer protection." That's another signal that the government wants mortgages to remain available, at good rates, to borrowers with a low risk of default.
Tell me how he is protecting the taxpayer, please. The federal government is not a revenue producing machine. It is a profligate spending machine that has been out of control far too long. The taxpayers will get the bill for this bail out in some manner. All so we protect foreign investments in a mortgage scheme that continues to lend to people who want something beyond their ability to pay for it!