Posted on 10/11/2009 3:31:44 PM PDT by combat_boots
This is going to be an ongoing series, I suspect - tracking government abuse of the citizenry via debt-shifting.
What am I referring to? Simple: Back-door bailouts of banks and industry (notably the auto industry) through farcical programs that con the citizens of the nation to take on unsustainable debt, thereby transferring what should be a corporate or bank failure to into a whole bunch of personal bankruptcies.
There are two programs in particular that exemplify this attempt; "cash for clunkers" and the various machinations in the housing space, including the insanely loose FHA credit procedures.
Cash for Clunkers violated two basic premises: It destroyed perfectly good capital assets (older cars that were in good running condition; indeed, it required 12 months of continual insurance coverage and registration - that is, proof of being in good running order for the past year - to qualify!) and replaced them with a vehicle that had a presumed debt load on it.
Now we find out that indeed (as I have long suspected) the government's insane FHA approvals of patently unsustainable loans was an intentional act:
Barney Frank, the Massachusetts Democrat who is chairman of the House Financial Services Committee, said in an interview that the defaults were, in essence, worth it.
(Excerpt) Read more at market-ticker.denninger.net ...
They had to destroy the economy in order to impose failed socialist policies. All to stay in power forever.
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