Now we come to the Fannie/Freddie bailout. This is certainly a true bailout; not because taxpayers are on the hook for potentially $5.3 trillion, but because there was a moral hazard established once these formerly government agencies were transformed into publicly traded companies, knowing that if they screwed up they would be bailed out. I’m sick and tired of hearing these excuses by Washington that this company and that is “too big to fail.” Listen you crooks, if they’re too damn big to fail, they need to be government run to begin with.
Now, the auto industry is looking for their bailout, with $50 billions in low-interest “loans” from Washington. They are using the excuse that they need the money to produce more fuel efficient autos. In other words, they are saying “our business model stinks and our leadership has been horrendous for years, but if you want to help the economy, loan us $50 billion so we can make cars running on less oil.” What will be the excuse the airlines industry uses for its bailout? In the past 12 months alone, GM has posted $54 billion in losses or nearly $70 per share!
People need to realize that all companies that are “too big to fail,” all companies that provide necessities – must be government run. That includes the Fannie and Freddie, the airlines, energy, and healthcare. Otherwise, in the best of scenarios, these industries will gouge prices. In the worst of cases, they will act irresponsibly and take excessive risks, knowing that they are “too big to fail” and the government will bail them out. This is just plain common sense. Why do you think these industries are in such dire shape? Think about it. And as far as the financial system, it needs real regulation. Washington already learned its lesson with the agricultural industry back in the depression. As a result, this industry is government controlled via subsidies.
Don’t even try to throw in a political stance saying it’s socialist. It’ just makes sense. Push aside your political views and focus on what’s best for the economy. Just because your political party creates a menu list of issues, that doesn’t mean you should agree with them all. Ultimately, if you are a patriotic American you should focus on doing what’s right for the country, not accepting the agendas of a party at face value. If you do this you will have been brain-washed like so many are today.
See Our Copyright Policy
Copyright © 2008-2015. AVA Investment Analytics, LLC. All Rights Reserved.
Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.
These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.
Article 19 of the United Nations' Universal Declaration of Human Rights:
Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.
More On US Markets