Some say all you need to do, to reflate the impaired values of mortgage-backed securities hurt by the decline in real-estate values and property foreclosures is to pretend that all the bad things don’t exist, and, like children playing with pixie dust, just wish all the bad stuff away.
It wont just go away.
Are we (the American public) so naive to think that there wasn’t a greater machine behind the manipulations of the economy? What happened to our so called analysts and economists – could they have really gone wrong as to not have predicted human behavior — or were they on target?
The ball was set in motion a while back, and now we are just watching it roll, making America look like the biggest circus in history.
The government sponsored enterprises (GSEs a group of financial services corporations: the three mortgage finance GSEs -Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks were originally created by the United States Congress) function was to enhance the flow of credit to targeted sectors of the economy and to make those segments of the capital market more efficient and transparent enhancing the availability and reducing the cost of credit to the targeted borrowing sectors: agriculture, home finance and education. *Key word: created by United States Congress.
Tax payers price tag: a takeover of a half-trillion dollars or more in worthless mortgages and other bad debt held by tottering institutions. At the same time these institutions could care less if you lose your home… you’re not a name.. you’re a loan number.
Then there are the vultures, short-selling in financial securities (a trading method that bets the value of stocks will go down), it has been blamed for accelerating the plunge in stock prices of banks and other financial institutions. (The Securities and Exchange Commission acted to block the activities).
Going back to the late 1980s, the government created the Resolution Trust Corporation to tackle the savings and loan crisis where it acquired defaulted mortgages, foreclosed real estate and other assets of nearly a thousand failed savings and loans, restoring order and stability to the system. It took six years and $125 billion in taxpayer money to resolve that crisis.
It seems that everywhere you go there is talk about the ‘bailout’ and the Depression of 2008… HeLLo- Look around, we’re in it! I am sure that in your very own circle of people there will be someone looking for a job or someone losing their home.
The government will do what the government does, in the mean time we Americans have to go back to basics… restructure our personal finances, unite and spend more time with our families, and work within our community.
How to survive the Great Depression of 2008 – 2009
Yet, for all it’s worth all eyes are on America awaiting to see how we come out of this one.
Click here to visit The Congressional Record it’s the official record of the proceedings and debates of the U.S. Congress. (make sure you have your coffee cup by your side… when you visit the link type in bailout in the search box.. and sit back you may be in for a treat)
Daisy Says: America, history in the making!
Dollar-bills and coins
Enter and leave our wallets
Leaves and snowflakes fall