America More Socialist than North Korea and Cuba

 

The Freddie Mac/Fannie Mae Bailout a real LOCAL security threat with National Security Implications.

This will affect your immediate environment, from your ability to travel to work and back,to your safety, or the safety of “your papers and possessions”.

 Link to commentary:

http://blog.lawsonforcongress.com/2008/09/13/unwinding-the-fraud/
 

 

Excerpt from the analysis:

Unwinding The Fraud
By: BJ Lawson
It started last week with the Freddie and Fannie bailout, where our Treasury ignored our national interests and bailed out foreign central banks, PIMCO, and other sophisticated investors. What was wrong with this story? Most importantly, the Treasury offered public funds to guarantee debt that has never had any government guarantee, implicit or explicit:

Read the bold print on that prospectus. Should there be any confusion here? If homeowners start falling into default and not paying their mortgages, and the rate of default exceeds Fannie’s ability to make payments to its lenders, is there any reason to believe that the holders of those mortgages should expect our Treasury to make up the difference?
As Jim Rogers notes, in the wake of our Treasury volunteering our liability for Freddie and Fannie’s debt, we are perfecting the art of welfare for the rich:

While some well-meaning Americans attempt to rationalize this bailout as a “necessary evil,” the unintended consequences are beginning to reverberate. First, our government’s destruction of Freddie and Fannie’s preferred stockholders has closed the door on preferred stock for other at-risk organizations who might have wanted to use that route in attempts to raise capital. As Denninger noted:
If you’re a bank or other financial and need to issue (or have outstanding) preferred stock, you’ve got a problem – a serious problem.  The Federal Government just declared out loud that it will declare that stock essentially worthless any time they think there’s an accounting irregularity, and they will value things as they – not GAAP – sees fit.

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6 responses to “America More Socialist than North Korea and Cuba

  1. Pingback: BJ Lawson Friend Or Foe? « John Jacob H’s RKBA Commentary

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