U.S. Treasury Ends Cap on Fannie, Freddie Lifeline for 3 Years
By Rebecca Christie and Jody Shenn
Dec. 25 (Bloomberg) -- The U.S. Treasury Department will remove the caps on aid to Fannie Mae and Freddie Mac for the next three years, to allay investor concerns that the companies will exhaust the available government assistance.
If they can get you asking the wrong questions, they don’t have to worry about the answers. – Thomas Pynchon
This is a big story that will likely, by design, get lost on those who will be impacted by it the most. Releasing this bit of news during the Christmas Holiday shopping rush was not by accident.
Fannie and Freddy Krueger had been on home detention and relegated to their basement of horrors, by day, only to be released a few hours each night to terrorize Main Street neighborhoods with their limited cash fund of 400 billion taxpayer dollars. Supposedly, the Kruegers had only spent approximately a quarter of the 400 billion taxpayer dollars to reclaim those financially dead and decaying corpses left behind during their previous financial massacres aka the subprime crisis.
The latest news, however, to hit the wires is that the Kruegers are no longer on home detention and they’ve been given financial carte blanche to unleash unlimited terror on Main Street neighborhoods. In addition, the Kruegers appear to be in line to receive 6 million dollars each as a reward for the hand they played and that was dealt to them by the Federal Reserve’s artificially low interest rate policy. The Federal Reserve proved the theory that “If you build it, they will come.” If you build a financial house of horror (a bubble), they (the financial ghouls) will come. That financial house of horror was built by the Federal Reserve which created bubbles in both the stock and real estate markets and ultimately facilitated the largest wealth transfer (swindle) in the financial history of this nation. The swindle continues to this day.
The 400 billion dollar spending cap has been raised to infinity (unlimited taxpayer funding) for the next three years. Is it possible the Kruegers, with unlimited access to the U.S. taxpayer’s ATM machine, could financially disembowel every taxpayer on Main Street in three short years? Oh my, so many taxpayers to cannibalize and so little time...how on earth will they cope?
What sense does it make to uncap the Krueger’s spending limit and then turn around and cap the number of years they have in which to spend it? Will the money be used to reclaim the existing dead and decaying financial corpses or the walking dead with their soon-to-be Option ARM resets imploding in 2010? Could some of the unlimited funding be used to scavenge Main Street for new victims to be enticed to the Krueger’s basement of horrors? Haven’t they already shaken most of the loose change out of the taxpayer’s pockets already?
What do they know that we don’t? When you go from 400 billion dollars to infinity in one swift move, without any debate or public discussion, what does that portend? Did someone take Geithner, Bernanke, and Obama to the basement of horrors for a sneak preview?
Lock your financial doors and bar the windows…as the Kruegers are either on the prowl looking for fresh blood or it could be a rerun of Night of the Living Dead.
We see the neoconservatives standing outside their homes clanging their Community Reinvestment Act pots and pans vainly posturing and hoping that Freddy, Fannie, and the Zombies (kind of sounds like the name of a rock band instead of a horror flick) will tear into the flesh of their democratic neighbors instead of them during the next election cycle. The bottom line is this. The subprime crisis couldn’t have happened without the artificially low interest rate policy of the Federal Reserve. The only sane solution to end this perpetual horror flick is to drive a stake through the heart of the Federal Reserve by abolishing it.
Why have both political parties been complicit in sponsoring this perpetual horror flick? The Federal Reserve funds their hobbies that serve to get them re-elected. The democrats use the Federal Reserve’s easy money policy to fund social welfare programs (to buy votes) and the pot clanging republicans use the Federal Reserve’s easy money policy to fund their worldwide Empire and wars of aggression against the Axis of Evil while placating the military-industrial complex (large campaign donors). If we END the FED (the real Axis of Evil), the social welfare and warfare programs come to a screeching halt, the financial ghouls return to their graves, and politicians suddenly lose their relevance. We, as a people, will then have more money to pursue pleasant dreams of our own design rather than funding these incessant nightmares.
The FED will be abolished one way or the other. If it is abolished by conscious choice, we have a chance for reshaping our financial destiny upon a stable platform. If the FED commits suicide, however, it may, in a last ditch measure to save itself, grab at anyone standing on the ledge next to them as they scream, “No taxpayer left behind!” The suicide option (destroying the dollar) appears to be the direction we are going which will take far longer to dig ourselves out of than by abolishing the FED by conscious choice. The other option would be for the FED to be swallowed up by the International Monetary Fund (IMF) with the IMF being renamed the Central Bank of the World. Why do bureaucrats and central planners always think that supersizing incompetence and arrogance is the ultimate solution to incompetence and arrogance?
Jim Rogers - Financial Markets; If U Don't C a Guy With a Bow Tie, Keep Refreshing Til U Do