Posted on 07/21/2008 11:39:48 PM PDT by TigerLikesRooster
Buckle Up
With transparency and truth in short supply, caution is warranted
BY TONY ALLISON
Investor Jim Rogers minced few words, as usual, when asked about the U.S. Treasury Department's plan to shore up Fannie Mae and Freddie Mac.
“It is an unmitigated disaster”, said Rogers. “Taxpayers will be saddled with debt if Congress approves (U.S. Treasury Secretary) Henry Paulson's request for the authority to buy unlimited stakes in and lend to Fannie Mae and Freddie Mac.”
"These companies were going to go bankrupt if they hadn't stepped in to do something, and they should've gone bankrupt with all of the mistakes they've made,'' Rogers said. “What's going to happen when you put some Band-Aids on it for another year or two or three? What's going to happen three years from now when the situation's much, much, much worse?''
"They're ruining what has been one of the greatest economies in the world,'' said Rogers. “Bernanke and Paulson are bailing out their friends on Wall Street but there are 300 million Americans that are going to have to pay for this.''
(Excerpt) Read more at financialsense.com ...
Ping!
The same thing if they were cut loose now. Except Tax payers will have been bilked out of a whole lot more money.
The “Investment Biker” is right again.
Gee, so what's new? We are saddled with a bunch of thriving cruds in our federal government. We should march on and hang these people, but instead lay back and take it up the a$$.
Fannie Mae and Freddie Mac may be “to large to fail”, but the American taxpayer is not.
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