McCain will not bailout Fannie Mae, Freddie Mac, GM, and countless others. McCain will force YOU to bail them out.
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Posted on 07/26/2008 3:14:50 PM PDT by reaganaut1
LOWER THE FLAGS ALONG WALL STREET TO HALF-STAFF. Play a dirge and hang out the crepe. Market capitalism is dead. Our financial system, for all intents and purposes, has been federalized, with taxpayer-financed "backstops" stretching as far the eye can see. Bear Stearns, Freddie Mac (ticker: FRE), Fannie Mae (FNM) and their mortgage-industry brothers-in-ARMs all are beneficiaries of this corporate-welfare scheme. Other reckless lenders with sob stories almost certainly will be added to the list.
What is hard to digest is that the government's "bailout" of Fannie, Freddie and the rest of the housing market has elicited barely a whimper of protest from the famed financial district, a place that once proudly billed itself as the free-market capital of the world. Nor has there been a plausible peep from our two presidential candidates about this blow to the American way.
...
The backstops now are a political problem for the GOP, which no longer can castigate Democrats for pitching big-government solutions to most of our problems. If the Democrats win in November, as pollsters are predicting, there will be no credible opposition to: government-run health care; a tax system that redistributes wealth rather than raising essential revenue; and a command-and-control "green-power" industry, or the born-again prohibitionists who this time will take their axes to the oil barrel, sparing the contents of the whiskey barrel as a fuel resource for your car.
If you expect a spirited defense of free-market capitalism from Republican hopeful John McCain, look elsewhere. McCain recently said he doesn't believe General Motors (GM) needs a government bailout, but if conditions worsen enough for the auto maker, all options need to be considered.
R.I.P. free market, at least on this side of the Pacific.
(Excerpt) Read more at online.barrons.com ...
The only thing that will save us is the fact that we are already pretty much bankrupt.
Boo freakin’ hoo. Wall Street has only itself to blame. They screwed the pooch, and now we all have to suffer.
Never-ending corporate welfare ping.
Just business as usual only getting to be more overtly so.
The political powers that be, media powers that be have been pushing
FOR AT LEAST 108 years away from Capitalism . . . witness:
Post #76
on this FR thread:
http://www.freerepublic.com/focus/news/2031425/posts?page=77#77
McCain will not bailout Fannie Mae, Freddie Mac, GM, and countless others. McCain will force YOU to bail them out.
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The globalists think that things are so far along,
that there’s nothing that can stop them. So they are getting more and more overtly brazen.
Borrowers gorged on credit and speculated on housing.
The lenders and Wall Street let them do it.
The really pi$$es me off. THE CITIZENS OF THE USA WERE THE BORROWERS AND SPECULATORS!!!!!!!!!
Take some responsibilty, for God’s sake.
Actually, the Bible’s quite clear . . .
nothing will stop them . . .
until Christ at Armageddon.
Conservative GOP... RIP...
What do you expect when you are playing with fiat money?
When you can create ‘money’ out of thin air?
Why do you think they stopped reporting M3? They’ve been printing money like nuts.
They’ve been trying to hide/stave of hyperinflation of the currency. These failures are just exacerbating and compounding the inevitable.
Next stage: currency collapse.
A year ago, all the talk was that we wanted to bail out the individual homeowner's, but how could we do that without ALSO bailing out all the high-falutin' folks that dreamed up and executed this catastrophe. Now I agree, that's a pretty far stretch from the free market as well.
But fast forward a year. Foreclosures are off the charts, which means the little guy didn't get bailed out. But most of the fat cats are doing OK. The taxpayers just got put on the hook for about a TRILLION $$$ of Fannie and Freddie boo-boos.
Anyone loose a bonus at the F and F? Not that I can tell... Anyone go to jail? Nope. Are they still free to lobby Congress and buy any and all of the politicians of BOTH parties with campaign donations? Yes. Yes they are.
We're going to FLATTEN our bonds and our dollar, in the bond and currency markets.
I always wonder if Thomas Jefferson would think now is the time to water that Tree of Liberty with blood...as his famous quote suggests.
Does the author think that we’ve now turned some sort of corner or something? It’s just more of the same, been there done that will probably do it some more in the future.
That’s what happens when no one can be expected to feel any pain anymore—no matter how wanton or wreckless their actions.
This is a worldwide credit collapse.
However, using credit far beyond means has only been around since WWII. Granted, it will be one heck of an adjustment to get back to “pay as you go”, but it had to happen eventually.
But what does it mean when nobody will loan anybody money without over 100% collateral?
To start with, it means a balanced federal budget, whether they like it or not. With no one loaning the federal government money, they cannot spend a penny more than they bring in.
In turn this means that every deficit expense has to end, be it in Social Security, Medicare, the Pentagon, or any of the other million things the government does that it is not constitutionally authorized to do.
So we get a LOT less federal government. We also get to see a lot less money being poured into public education. Enormous State Universities will only get a quarter of the students the do now, who can only pay a quarter of the tuition they pay now, in cash. No student loans.
The government will have to print money like there is no tomorrow, so that there will be physical dollars to match virtual dollars on computer. But ironically, it won’t be inflationary, but to fend off severe deflation. Banks will have to go back to shuffling $100,000 bills around, to balance their books.
International trade will take a break, except on a cash up front basis. The US government will possibly trade food for foreign debt relief. Say $100 for a bushel of wheat. $1000? Otherwise $10 cash.
At a personal level, it will mean the end of credit cards. Only cash, instant debit and instant cheques will be accepted. People with a lot of cash on hand will be well off.
Other investments, much less so.
With little international trade, America will have to rebuild its heavy industry, and this will be the first step on the path to recovery.
You completely mis-understand why Free Markets/Capitalism works: "Good ideas succeed, bad one's FAIL."
It hurts, but in the end the system is better.
Alexis de Tocqueville once pondered why Democracies failed w/in the 1st 100yrs:
"...When the people learn to vote themselves money from the public trough..."
We used to have a Representative FREE Republic bound by the Constitution which fostered prosperity & a limited Fed Gov't....
I fear, we have one no more.
Haven't had one in a very, very long time.
L
And did they mention class warfare in the article that demands bailouts at every level and size of government, because they should've. Sorry but WE have have gotten the government WE deserve, and now WE will all suffer.
Libertarian ping! To be added or removed freepmail me or post a message here.
Yes, I stand corrected... since the 'New Deal.' I'm still amazed how we've withstood the consequences of the 'New Deal.' for all this time. (Upon the foundation of a Ponzi Scheme.)
Perhaps, it was Kennedy's Immigration Scheme from the 60's feeding the Ponzi Schme.
Don’t worry! It’s only trillions. /s
Oh. That makes it all right then.
McCain to Fannie Mae: Go Away
http://www.freerepublic.com/focus/f-news/2051662/posts
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