Bankrupt America; Chicken Little Economics

The sky is falling. For the life of me, I cannot understand the sudden realization that the financial structure of the economy is in crisis. Let us examine the facts we know instead of focusing on the unknown. To date the federal government stepped in to preserve the “integrity” of Fannie Mae and Freddie Mac and AIG among others. Once again, the weekly Sunday Fireside chat yielded an epiphany to our leaders.
Treasury Secretary Paulson, Chicken Little
http://www.youtube.com/watch?v=1IUZCyU1S9I

The weekend warriors announced their intentions to work through a deal approved by the Bush administration. Does anyone else hear those bells and whistles or see the red flags. These measures will save Wall Street from a financial meltdown and the worst crisis since the 1929 crash. Well that surely was a sudden shift in perspective.

Where’s Phil Gramm when you need him. Citizen McCain’s economic advisor proclaimed his infamous wisdom stating the nation is full of whiners. The economic slowdown is a mental Recession. I repeat, McCain’s economic advisor. A nation full of Whiners. It is a mental Recession. I thought we were in the eighth inning of a nine-inning game. Haven’t you heard, we’re playing two, a doubleheader?

Phil Gramm: "Mental Recession... Nation of Whiners"

http://www.youtube.com/watch?v=2NVjq2py7BA


What we know is the U.S. Treasury is purchasing bad debt from financial institutions, which is without precedence. We know the present administration will be nationalizing the two mortgage giants. McFrannie Mae will be seized by the U.S. Government. Quick dialog summary…

That is good; the feds are doing the right thing to save the homeowner.
No, they still lose their homes.
The shareholders of Fannie and Freddie?
No, they lose it all.
Common and preferred equity investors take a zero.
Yes.
Does anyone get a return from his or her investment?
Yes, the International Investors.
Of course they do. They are saving the financial institutions.
Yes, millions of homeowners defaulted on loans in excess of 14 Billion dollars; that is Billion with a b.
Therefore, the scenario playing out is foreclosure equates to federal control of property. Is that right? Hello.

Elton John-I gues that's why they call it the blues
http://www.youtube.com/watch?v=QIc8tYOofJ8


Here is a stupid suggestion, Open the Discount Window to the driving force behind the U.S. economy; The American consumer.
No, cannot do that, it is better to displace millions of Americans to teach them a lesson.
That lesson being…
They should not have got in over their heads.
When they lost their jobs?
Right.

http://www.youtube.com/watch?v=_-4pLxMJBlo

Good ol fashioned TRUTH

So far, we have displaced homeowners and federal control of property. Then there is the $85 billion bailout of AIG, the nation’s largest Insurance Company. The federal government will have an 80 % stake in that arrangement.

Therefore, out of work Americans lead to the foreclosure of their homes. The feds take control of the property and have a stake in the insurance business. All but International Investors take a zero on this Takeover. Just out of curiosity, I find the enormity of the U.S. housing market out of range for International Investors. Being Freddie and Fannie are GSE’s, dictate private investors unsuitable, unless it is a huge country like Russia or China.

"China, perhaps the largest foreign shareholder of Fannie Mae and Freddie Mac's mortgage-backed securities and other debt, welcomed news Sunday of a United States government takeover of the troubled mortgage behemoths

Bank of China, the country's third-largest commercial lender by assets, said in late August that after cutting its holdings by 25%, it still owned $7.5 billion in Fannie and Freddie bonds. The bank also held $5.2 billion in mortgage-backed securities guaranteed by the two agencies, the International Herald Tribune reported.

China's three largest commercial banks own more than $18 billion in bonds or mortgage-backed securities from Fannie and Freddie. Earlier reports that the Chinese banks owned significantly more than that were refuted by Chinese officials."

Now it all comes together, it is perfectly logical and reasonable; I was getting a little paranoid there. "You don't know how lucky you are boy, back in the Us, back in the Us..." I knew I saw a RED FLAG… ANY CHANCE IT'S CANADIAN? gjf
Fans sing O Canada
http://www.youtube.com/watch?v=meLpuF9UMvk

NOW THAT'S WHAT I CALL NATIONALISM