[Attention Surplus Disorder]

The brief summary (as I and some others see it)

http://www.youtube.com/watch?v=kJfUNWthglI

On the front page of the prospectuses for this debt, at the top, in big black capital letters, as has been the case for many, many years:

“THE CERTIFICATES AND PAYMENTS OF PRINCIPAL AND INTEREST ON THE CERTIFICATES ARE NOT GUARANTEED BY THE UNITED STATES AND DO NOT CONSTITUTE A DEBT OR OBLIGATION OF THE UNITED STATES OR ANY OF ITS INSTRUMENTALITIES OTHER THAN FANNIE MAE”

But worldwide, wise, experienced, savvy financial gurus apparently misread that and somehow deleted the word “NOT” in its’ two appearances.

Ladies and gentlemen, you and I and every taxpayer in the nation are now going to make these bankers and funds whole for their third-grade reading error. Let’s hope we get free toasters out of it. We are witnessing the single biggest step towards economic and financial socialism this country has ever taken. I’ve read the comments about whom is to blame for this travesty, but frankly, it doesn’t matter. I leave it up to all who may read this to ponder the consequences for themselves.

[CodeToad]

Good video. Well presented. He makes a great point that this effectively doubles the federal credit trade and forces home prices down significantly. He also points out that on Monday F/F will only take loans with at least 20% down on the loan.

[Freedom_Is_Not_Free]

But... but... but... only 14 banks have failed to date and GDP was 3.3% in 2Q. Times are good. Ignore the man behind the curtain.

Shop! Spend! Get more credit cards! Tap ALL the equity in your home. Life is good.

Best time to buy... EVER!

[Lijahsbubbe]

We are witnessing the single biggest step towards economic and financial socialism this country has ever taken.

You know its bad when even NBC news hints at the implications.

[happygrl]

I've read that it was the Chinese, who hold huge amounts of Fannie Mae and Freedie Mac, that forced this.

Any truth to this ?