Commnism and consumerism become one...

I chuckled as I saw an article from Reuters, in The New York Times this morning. It was based out of Hong Kong. I thought this was so fitting. In the article, by Kevin Plumberg, the U.S. government is considering taking over Fannie Mae and Freddie Mac. That is if their funding problems worsen. As the shares of these two agencies continue to plunge, who doesn't feel, at this time, that their shares won't worsen? Fannie and Freddie are government-sponsored entities generally viewed as having the implicit backing of Washington, and considered the last bastions of support for a U.S. housing market in its worst downturn since the Great Depression.

The firms are having extreme difficulty raising capital and investors on Wall Street are leaving in droves. The government is considering a plan that would place the companies into conservatorship. This would mean their shares would become worthless and the losses on the near 50% of ALL homes in the United States to which they guarantee would be paid by tax payers.

This was where I thought the Hong Kong connection was a bit funny. Through this current administration we have seen our rights and constitution be stripped away and manipulated to where this country is quietly becoming a government run system with less and less freedoms to its people. This, plainly stated, is communism. Government control for nearly everything. Yet, the Republicants continue to tout "less government"...Like China or North Korea. As our elections are becoming more and more jaded and meaningless we get closer to this every day. When elections reach a point to which our partisan politics keeps voters from casting viable votes through fraud, payouts, jurisdiction manipulations, hanging chads and such, our government gets closer and closer to being selected by its judicial branch to which was selected through the power mongers themselves.

What I found equally funny was how government officials told NYT that no action by the administration is imminent, and that Fannie and Freddie were not considered in crisis. With their stock plummeting over 80% in the past few weeks and the dollar balancing on the edge of nowhere, I wonder what the term crisis means anymore.

Of course the spokesman for Freddie Mac declined to comment and that Fannie Mae and U.S. officials could not be reached for comment.

The fate of Fannie and Freddie has ramifications far beyond the United States. This government rescue would mark the second time that Washington has stepped in to support the financial system since mounting U.S. subprime mortgage defaults swelled into a global credit crisis a year ago. The first, which I spoke about previously, and in more detail at the blog "A Day in the Life", found through this link, in response #1 when I discussed how in March, the Federal Reserve backed a plan for JPMorgan Chase & Co (JPM.N) to buy investment bank Bear Stearns Cos for a cut-rate price. Although, this cut rate pricing is also to be backed by taxpayers. Giving the financial institution no risk on their investment.

How do we little guys get in on some of that action!

The Bush administration has considered calling for legislation to give an explicit government guarantee on the $5 trillion of debt owned or guaranteed by the companies hereby doubling the size of the national debt. Where does Bush seem to think, along with McCain as he continues to tout no new taxes (sounds like Bush #1), where are we going to get the money? I mean between the invasions, I mean wars, and now this...

There has been no movement forward for accountability to the mortgage firms or the financial institutions, but the accountability is certainly being held to the homeowners.

I do believe that homeowners need to be held accountable for some of this. Not all of this! Try calling a bank and discussing your issues to solve a mortgage problem today. They are not responding to solutions at this time. We continually hear in the news, though, that the banks are receiving huge influxes of money and having huge write downs on their debt.

Since were really going to travel down this road, let's have the government simply take over responsibility of the mortgages in the United States. This would then relieve all responsibility to all mortgage holders. Since we are all soon going to be living in government housing let's really go the distance. And since the laws in the past few years on Eminent Domain have made some headway, I say let's forget it all and releive eachothers debt load. This way we will all have more money to spend on other items that help keep the global economy turning instead of just the Wall Street fuck ups. Since after 9-11 Bush told us immediately to "go shopping" it seems his interests lie in consumerism. Since the global economy has tanked, mainly due to the ZERO regulation with mortgage and financial institutions let's complete this "bandaid". We can't seem to come to any point of regulation for the mortgage and financial institutions to really get to the root of this problem so let's simply resolve all debt. This is what could possibly take place anyway if the government steps in to guarantee all of these loans.