FREDDIE MAC, FANNIE MAE & FASCISM: or WHERE WAS CONGRESS WHEN CHICKEN LITTLE WAS WARNING THE SKY WAS FALLING?
In this article, Ms. Devvy Kidd proves that Idaho LIBERTERIANS are allergic to GOV bailing out BUSINESS especially when it's Gov's corporate cronies for whom these CEOS paid election campaign bills.
"I told all four that there were going to be some times where we don't agree with each other. But that's OK. If this were a dictatorship, it'd be a heck of a lot easier, just so long as I'm the dictator." Gov. George W. Bush (R-TX), President-elect, December 18, 2000
Fascism: A philosophy or system of government that is marked by stringent social and economic control, a strong centralized government usually headed by a dictator, and often a policy of belligerent nationalism; oppressive or dictatorial control.
CRONEYISM: A zeitgeist whereby good ole boys with tons of money, power who only hang with one another, help each other to nail stuff and protect it too so they are free to pursue happiness involving golf, ladies of easy virtue and gourmandism.
A little over a week ago, these United States of America took another gigantic step towards Fascism when the U.S. Department of Treasury and the unconstitutional, privately owned "Federal" Reserve" bailed out two more private corporations ostensibly to calm fears in the market: (A LONG LINE OF CEOS waits behind them, for their bailout!)
"Fannie Mae and Freddie Mac play a central role in our housing finance system and must continue to do so in their current form as shareholder-owned companies," Paulson said in a statement. "Their support for the housing
market is particularly important as we work through the current housing correction." This would be accomplished in a plan Il Duce would applaud: "First, as a liquidity backstop, the plan includes a temporary increase
in the line of credit the GSEs have with Treasury. Treasury would determine the terms and conditions for accessing the line of credit and the amount to be drawn," Paulson said. "Second, to ensure the GSEs have
access to sufficient capital to continue to serve their mission, the plan includes temporary authority for Treasury to purchase equity in either of the two GSEs if needed."
Rounding out the stringent economic control is 'a strong centralized government' awash in agencies with powers never intended when the U.S. Constitution was ratified:
"The ousted chief executives of Fannie Mae and Freddie Mac have the potential to exit with golden parachutes, but the government could cut the strings. The new regulatory agency that seized control of the mortgage-funding giants and forced out their chief executives Sunday has broad but untested power to prohibit severance payments. Under federal law, it could do so on a variety of grounds, including if it found that the former executives were responsible for the companies' financial troubles.
"We are working through the compensation issues and have nothing to say at this time," Federal Housing Finance Agency spokeswoman Corinne Russell said by e-mail yesterday."
Compensation for CEOs who ran their corporations into the ground will be rewarded by a massive injection from the sweat off your back despite the rhetoric:
"The severance packages could be worth as much as $14.9 million for Richard F. Syron, the former Freddie Mac chairman and chief executive, and as much as $9.8 million for Daniel H. Mudd, the former Fannie Mae
chief executive, said David M. Schmidt, a senior consultant for the executive pay consultancy James F. Reda & Associates."
Is this good for America? Not according to some of the finest minds in this country who truly understand the danger of what just happened: "In the latest example of financial market madness, the recent government “bailout” of Freddie Mac and Fannie Mae has perversely resulted in a sharp rise in the value of the U.S. dollar. If the markets were functioning rationally, the transference of staggering new liabilities to the U.S. Treasury would have been immediately seen as catastrophic for the dollar. Instead the markets have ignored the obviously negative long-term implications and have remained fixated my worst fears, and increase the chances for a hyper-inflationary
"Had the government done the right thing and not guaranteed Freddie and
Fannie debt, I believe we would now be experiencing an outright
financial crisis. The dollar would be falling sharply along with real
estate prices, the government has merely delayed the crisis. The
borrowed time will cost us dearly, as the day of reckoning will now
likely involve much steeper losses for our currency.
"The Freddie and Fannie takeover does nothing to address the underlying
problems that forced the companies into bankruptcy in the first place.
All of the bad mortgage debt still exists. In fact, based on this
bailout, there will be trillions more in bad mortgages insured over the
next few years. The only thing that has changed is how the losses will
be distributed. Instead of falling solely on bond holders, who had
chosen to invest in mortgage debt, they will now be dispersed among U.S.
taxpayers and all holders of U.S. dollars, who made no such choices."
The jackals feeding on the American people and the fruits of their labor
do not care and neither does Congress. On September 28, 2004, I wrote
yet another column warning Americans Congress would do nothing; many
more were to follow. On March 17, 2005, Dr. Edwin Vieria, began writing
his brilliant analysis on the coming financial meltdown and the only
real solutions. And, still, Americans voted back in the same Congress to
fix a problem they continue to ignore. Where was Congress ten days ago
to stop this lunacy?
Why wasn't Nancy Pelosi standing on the House floor demanding her
colleagues halt this latest bail out? Probably because her colleagues
are holding paper from those two corporations and to deflect the blame
from this House of Incompetents:
"According to the Center for Responsive Politics, 28 lawmakers had
between $598,100 and $1.7 million of their own money invested in the two
companies last year. Of them, 12 members of Congress owned between
$60,800 and $246,700 of stock in the two companies, which is practically
worthless now that the government has seized Fannie Mae and Freddie Mac
to keep them afloat as more of their customers in 2007, worth between
$537,400 and $1.5 million. (Lawmakers disclose their finances in ranges,
annually, making it difficult to determine their assets' precise
values.) Rep. Mary Bono (R-Calif.) held bonds in the companies worth
between $126,050 and $365,000, making her investments in Freddie Mac and
Fannie Mae more valuable than those of any other member of congress.
"Four members of either the House Financial Services Committee or the
Senate Banking, Housing and Urban Affairs Committee were invested in these
companies: Rep. Carolyn McCarthy (D-N.Y.),who held $32,216 in bonds; Sen.
Mike Enzi (R-Wyo.), who held at least $2,002 in bonds; Sen. Charles Schumer
(D-N.Y.), with at least $2,002 in stocks; and Rep. Ron Klein (D-Fla.), who
held at least $1,001 in bonds.
"Republican presidential candidate John McCain, who called the federal
bailout "outrageous" (but necessary), also reported having up to $10,000
invested in the two companies--up to $9,000 worth in bonds and up to
$1,000 worth of stocks."
Just like the 151 members of Congress who directly benefit financially
from the war in Iraq; click here. For that matter, where was Barack
Hussein Obama, aka Barry Soetoro, aka Barry Obama, aka Barack Dunham,
and aka Barry Dunham or Juan McCain? Dr. Edwin Vieira comments:
"So far, whatever remedy the Administration, McCain, or Obama has
proposed has presumed that the General Government in Washington and its
pet banks in the Federal Reserve system must keep America's present
hypertrophic financial bubble expanding indefinitely, or at least
prevent it from significantly contracting in the near future. So they
advocate such policies as "bail outs" of both private and public
enterprises (Bear Stearns, Fannie Mae, and Freddie Mac being the most
prominent so far) and pitiful "stimulus packages" of some "free" cash
for average Americans, all effected through the injection of new
"liquidity" into the markets in the form of Federal Reserve's endless
inflation of the supplies of currency and credit..
"....That candidates for the highest office in the land - not to mention
the incumbent - would be making reform of the Federal Reserve System the
central issue in the presidential campaign and the most important task
to how the Federal Reserve operates; why it endangers America's
economic, political and social stability; and what steps must be taken
gradually and safely to return this country permanently to a
constitutional monetary system based upon gold and silver, which will
prevent public officials and bankers thereafter from redistributing
wealth from society to special interest groups through manipulations of
currency and credit.
"Unfortunately, that these events are not taking place proves that
most top-ranking public officials and politicians are neither patriotic nor
The nonsense being fed to the American people by Obama and McCain is
little better than sawdust blowing in the wind. Obama is a Marxist who
wants to strip you of every last penny in your wallet, and McCain, in
his own words, knows nothing about the economy; see short video. Experts
who deal in the markets are finally uttering the dreaded word:
"The end result of the global economic slowdown may be the U.S.
announcing national bankruptcy as the government cannot afford the bailouts
that it promised and the market will not bail out the government, Martin
Hennecke, senior manager of private clients at Tyche, told CNBC on
Thursday. "We expect a depression in the United States. We expect a depression, very
possibly, also in Europe," Hennecke said on "Worldwide Exchange."
This toxic path of bailing out private corporations took a foot hold
back in 1983 with Chrysler and the camel's backside is now in the crowded
tent. It's odd, however, that Congress and the Department of Treasury pick
and choose which private corporations they wish to keep from the frying
Two major industries, automobile and mortgage lending, got the big jolt, so
why didn't Congress and the FED jump to save ENRON, one of the biggest
energy concerns in America at the time? Actually, the 7th largest
corporation with a market capitalization of nearly $60 billion dollars.
Didn't those ENRON employees who were sold "buy our stock, it's solid!" by
Ken Lay, matter to Congress when they lost everything - many at retirement
age left with nothing? (See links below) Why wasn't ENRON "back stopped"?
The layoffs will continue while Congress votes to bring in another
550,000 cheap foreign workers! The economy will continue to stagnate
as the American people are squeezed to meet just basics like food, clothing
and a roof over their heads, the less disposable income they have to inject
into the economy. The "Ho, ho, ho kiss under the mistletoe" retailers won't
see many gifts under their tree this year. Increasing numbers of Americans
have lost faith in the system; for tens of millions, their credit is like
the Kalahari during a bad rain year. Also, traditionally (no pun intended),
the pink slips usually roll out in December. As bankruptcies were already
29% in a 12-month period by August, how much will those strapped Americans
drop to give retailers that all important boost at the end of the year?
A thousand more "economic stimulus packages" will do nothing; it's
akin the emptying the ocean with a teaspoon. This past wave of foreclosures
will birth new ones and Americans will continue to sink into quicksand
Obama and McCain blather on with their gibberish. Congress will continue
spending when the people's purse is overdrawn $9.6 TRILLION dollars.
For those of you who might have missed Carolyn Lochhead's September
12, 2004, column, Speeches Ignore Impending U.S. Debt Disaster, you will
nothing has changed this election cycle with the two front runners and
VP picks as they ignore the warnings from four years ago.
"Laurence Kotlikoff, Economics Chairman at Boston University, who has
written abundantly on this subject, offers up a shocking response on how to
close a $51 trillion dollar fiscal gap: "To give you idea how big the
problem is, you'd have to have an immediate and permanent 78 percent hike
the federal income tax." More than double the payroll tax, immediately and
forever, from 15.3 percent of wages to nearly 32 percent; Raise income
by two thirds (roughly 78%), immediately and forever; Cut Social Security
and Medicare benefits by 45 percent, immediately and forever;"
I must repeat myself in hopes that new readers will grasp how dire
situation is: Every penny spent to bail out these private corporations has
to be borrowed since there is no money in the treasury. How do you write a
$100 million dollar check to Freddie and Fannie when your bank account is
already overdrawn $9.6 TRILLION dollars? The hundreds of thousands of
Americans who are the beneficiaries of these bail outs, mortgage freezing
and other madness by Congress for votes, simply no longer care about the
constitutional issues. They're desperate and want only to be saved.
What private corporation will be next? How about I start a corporation
which sells diapers. I mean, the country can't do without them, just like
we need automobiles and mortgage lenders. Officers of the Corporation follow
my lead making stupid business decisions while paying ourselves a king's
ranson in salary and over extending ourselves, until, uh, oh, we're in trouble. I
call Helicopter Ben Bernanke and he bails out my company by stealing from
you. See what I mean? At some point the whole thing blows just like a
balloon with too much air.
Mega-billionaire, world government advocate, George Soros, is busy
buying gold. Why? When he's not busy buying Democrats, his knowledge of
financial markets is legendary; GOOGLE him, see. If you are as concerned
as you should be, I recommend you call Eric at El Dorado Gold and talk to
him. Learn why gold is the only refuge as a hedge against the hyper
inflation that can eat a country alive fast as a falling star. How safe is
your 401(k)? Oh, yes, there are supposed to be safeguards in place. Are you
sure? With all these corporations fudging their numbers until it's too
late, Americans would do well to question now. What about pension plans? A very
troubling post appeared on Le Metropole Cafe a few days ago:
"Bill - a friend of mines girlfriend works a N.Y. trading desk for
Lehman - she tells my friend today that $8B has been evaporated from the
employees pension fund and that the company has told office staff that an
announcement will be forthcoming before the Asian markets open this
I shudder to think this is true, but I suppose we'll find out soon
enough. It appears others are also concerned about pension funds:
"Now we know. The giant black hole of derivatives at JPM is about to
become the size of Jupiter. With the utter failure of Fannie and Freddie (a
culmination of what I predicted 12 years ago) Fannie and Freddie’s massive
derivatives portfolios can now be hidden from public scrutiny. These
trillions of derivatives, which in likelihood have already failed, can now
be whitewashed with the able assistance of the US taxpayer. Also the true
values of their mortgage portfolios gets deep-sixed. This is no doubt the
single largest financial failure in the history of the world. The Fed had
every reason to previously discontinue M-3 reporting.
"Can you imagine what is about to happen to the dollar supply once this
catastrophe starts getting paid for? The derivatives may now become
hidden from view, but the inflationary implications will become VERY
evident. Another ominous problem facing FNM and FRE is a collapse in
their pension plans and retirement funds. Retirees and current employees
holding FNM/FRE stock will get wiped out, however a pension fund
collapse would mean open revolt. This is another side-bailout I see
The age of aquarius has officially landed --They call it "THE AGE OF SOCIALISM."
From dave bromberg, stargazer.
The bailout of Fannie Mae, Freddie Mac, like the Chrysler bail out by Gov a few yrs back, the Bear Stearns investment bank by the Federal Reserve with J. P. Morgan has been described as "socialism for the rich."
I guess as the rich gave us Soc Security checks of 300$ a month, (my own,) Med-I-care, (if we had a car to go to doc or a dollar for the bus,) I guess we owe them CORPORATE WELFARE. But see here's the thing. Bail out one little corporation and it's the same amt of tonnage as bailing out 2 or three million human beings with a welfare check and a job.
WELFARE FOR THE RICH is an accurate description of what's going down in NYC/ DC now and whatever city the IMF and FED RESERVE are housed in. Anybody know where that is?
The tycoon, J. P. Morgan, who founded the bank that bears his name, was a big fan of astrology. Conventional wisdom says that we have entered the Age of Aquarius. Aquarius is the eleventh house of the zodiac and
it rules social gatherings. When you go to a party everybody is more or less equal. Of course, there is always the 'in crowd' and the various cliques, but in no other aspect of human life is the accent so centered on equality.
Aquarius also rules innovation, genius, NASDAQ, computers, television, chess, air and space, and ... all forms of bureaucracy, both governmental and private. The TECH WRECK WAS AN Aquarius affliction back in 2000.
When you apply this to an age, to all the administrative and business activity, and you use the theory that the simplest explanation is usually the correct one, there is only one outcome that makes sense ... SOCIALISM!
Astrologically, Aquarian cities are San Francisco, Seattle, Stockholm and Moscow. In S.F. the United Nations was created back in the 1940s, and the 'Summer of Love' happened in the 1960s. BIG AQUARIUS HARMONIC CONVERGENCE back then. Sweden has a modified socialist/light capitalist economy where every one is - as the joke goes - 'cared for from birth till suicide'. Russia, itself an Aquarian society, tried communism for seventy years, and is now searching for an acceptable form where one's neighbor has no more vodka or no less caviar than one's self.
Now I know that all the conservative
talk radio hosts will have a conniption
fit over this idea, especially my favorite,
Michael Savage. He'll rant and rave,
call me a liberal putz with a mental
disease, and scream about borders,
language and culture.
Listen Schmuck, no matter how much
you yell about illegal immigrants, they
are all God's children, and in the final
analysis we'll "all have to get along"
as my favorite street sage, Rodney
King, would tell us.
At one level, I'll give you, the terrorists
are definitely a problem. So here,
unfortunately is another aspect of
Aquarius. It rules chaos and confusion.
All that trouble in the Middle East, it's
part and parcel of the new age. But,
there is one good thing about that - the
radical religionists are ruled by the
astrological element of fire. The age
is the diametric opposite element of
fire. It is air.
Astrology tells us that where there is
mostly air activity, there is a shortage
of fire actions. With an air age of
computers and bureaucracy, fire,
with car bombs and beheadings, won't
gain the upper hand for the next two
As for the economy, it is now ruled by
the element water, with money sloshing
around to find 'liquidity' in all the new fads.
But luckily there is a parallel economy of
the element earth. You can buy an item
for ten dollars at the mall in the water
economy, or a similar item for only a
few bucks in the earth economy at a
thrift shop or garage sale. The Green
revolution is already making that clear,
and it'll give us a healthier way of living
into the bargain.
So clear the decks for socialism. J. P.
Morgan, Nostradamus and Rodney King
are all pointing the way. That ideational
tipping point is just over the horizon.
After all, we already know the tune:
"This is the Dawning of the Age of Aquarius ...
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