Sunday, September 07, 2008

Bankrupting America: Bailing out Fannie and Freddie will cost us $25 Billion, we are told our debt is $9.6 trillion but it is really $53 trillion!

Fannie Mae and Freddie Mac together hold or back half of the nation's mortgage debt, and have played an increasingly important role in the real estate market since the credit crisis started in August 2007. A government bailout could cost taxpayers around $25 billion, according to the Congressional Budget Office. Treasury Secretary Henry Paulson and two other regulators are working on a plan to put the troubled mortgage finance companies into a conservatorship, and remove Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron, according to Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee.

News of the likely government takeover Friday followed a report by the Mortgage Bankers Association that more than 4 million American homeowners with a mortgage, a record 9 percent, were either behind on their payments or in foreclosure at the end of June. That confirmed what investors saw in Fannie and Freddie's recent financial results: trouble in the mortgage market has shifted to homeowners who had solid credit but took out exotic loans with little or no proof of their income and assets. In July, Congress passed a plan to provide unlimited government loans to Fannie and Freddie and to purchase stock in the companies if needed. Critics say the open-ended nature of the rescue package could expose taxpayers to billions of dollars of potential losses. $25 Billion is a minimum

* I could have sworn I posted a couple weeks ago that the Debt ceiling was increased again to 10.5 Trillion or there about but I will use the reported $9.6 trillion figure that is in itself over whelming to our future as Bush has bankrupt America's future and the future of our children in his "success" McPalin wants to continue in this new Fascist America! However sadly $9.6 trillion is a bad joke compared to the debilitating truth that in fact America is $53 Trillion in Debt!

In the terrible reality The country is in a $53-trillion financial hole, but few of the nation’s leaders — including the two leading presidential candidates — are willing to grapple with it. So said former U.S. Comptroller General David M. Walker, who plays a key role in a new documentary film about the nation’s debt problems. Besides an $11-trillion debt, the country is also saddled with $34 trillion in unfunded Medicare promises, $7 trillion in unfunded Social Security promises and $1 trillion in miscellaneous debts, Walker said at an economic summit at Bryant University in Smithfield.

The total — $53 trillion — is the equivalent of $175,000 in debt for every man, woman and child in the country, Walker said. Federal budget controls expired several years ago and now, “Washington is out of touch and out of control,” he said. But even if the annual federal budget is balanced, the overall debt will continue to grow — automatically — unless voters hold elected leaders accountable and demand solutions, said Walker, former head of the U.S. Government Accountability Office, the watchdog arm of Congress. “America is at a crossroads,” he said. “We have much to be proud of and much to be thankful for, but we have strayed” from the nation’s founding core values.

Voters should demand that candidates for elective office acknowledge the $53-trillion problem, change the nation’s tax policy and address entitlement programs such as Medicare and Social Security, he said. He added that the nation must no longer write a “blank check” when it comes to health-care costs. “If we don’t get health-care costs under control, we will bankrupt this country,” he said. Walker also told about 230 business leaders, academics and others at the summit that “too many Americans are following the bad example of the federal government — spending more than they make.” It gets worse!

That brings back to the movie and Documentary I. O. U. S. A.! When leaving the theater after seeing I.O.U.S.A. -- the documentary billed as doing for the national deficit what An Inconvenient Truth did for global warming -- you'll likely be confronted with one of two impulses: You'll want to cut up your credit cards on the spot, lecture your kids on the meaning of frugality and call your representative and senators for a heart-to-heart about federal spending -- or you'll feel like throwing in the towel and learning how to say, "Do you want fries with that?" in Chinese.

I.O.U.S.A. delivers the goods with plenty of jaw-dropping figures. In 2007, China had the largest trade surplus of any country in the world, at $262 billion, while the U.S. had the greatest trade deficit of all nations, at $847 billion. At the end of World War II, nearly all federal debt lay in the hands of Americans, but by 2007 foreigners owned 45% of our obligations. As for what's occurring within our own borders, if current trends continue, the total federal debt will skyrocket to 250% of gross domestic product around 2040. The ratio of the nation's outstanding debt to GDP is 63% now.

** Creadon nabbed some big names to weigh in on the cause. Former Federal Reserve Chairmen Alan Greenspan and Paul Volcker give interviews, and former Secretary of the Treasury Paul O'Neill offers a disheartening account of his dismissal from office after butting heads with the Bush administration. He recounts Vice President Dick Cheney telling him, "We don't have to worry about deficits." Please read between the lines and maybe watch the terrible truth!

* You have to wonder what Cheney's terrible plan is when he can say we do not have to worry about Deficits? Does the idiot think we can file Chapter 11? Is it because of the plan for a North American Union? Attacking China winning and eliminating our Debt? What the hell is going on in Washington's little minds? My own thought is they purposely bankrupt our America because their new Fascist America is almost ready and a new Monetary system will be instituted. I can only anticipate with trepidation this facade of an election in this facade of a Democracy and beyond that January 20th when Bush and Cheney's rule is "supposed to be over"

James Joiner
Gardner, Ma


Dave Dubya said...

Their plan is to destroy any aspect of government that gets in the way of their profits. They really DO literally want to bankrupt America.

Mission Accomplished. Again.

an average patriot said...

You are entirely right. Absolutely 100% of the lie we are living today has been done on purpose from the instigation of world war to the bankrupting of America and it is coming to a head perfectly for the right to t5ake control.
There are no coincidences and no surprises here. It did blow me away that they always say the debt is around $10 trillion and we learn it is $53 trillion. How the hell do they get away with that?

Dave Dubya said...

The Republicans always get away with it. The pattern is set. Republicans wipe out the budget and cripple the economy, then dems get elected to do the dirty work of cutting programs to fix the mess.

The Reich may even WANT Obama to step in and catch all the flack for what THEY did.

Their worst case scenario is to have the dems feet held to the fire they built.

Their best case is continuing the Reich Wing dictatorship.

Americans are fools to not see this.

an average patriot said...

You know Dave you may be right about Obama being set up with this friggen mass and others espoused that thought too. I just firmly believe they have gone to far and will not end this Fascist agenda any way you look at it!

Distributorcap said...

that was one terrific post - most of america cant or wont grasp how really deep and dangerous this debt situation is.... since it doesnt affect them directly - yet - they dont care.
it wont happen tomorrow, but all the things you mention and talk about - will so doom this nation

an average patriot said...

Thanks! You are right but the mindless ass holes are dooming us all! $175,000 for every man woman and child is enough to smother the future and it is by design. They always mention that we are $9.6 trillion in Debt but never mention the other $44 trillion. Worse is as the wars grow so won't the debt unless China stops lending and ends this but it is in their favor to weaken us so what the hell is next?

Wally da Weasel said...

"We have much to be proud of and much to be thankful for..."

I wish he would provide some references for that statement.

an average patriot said...

I have come to think that, that is just said as a qualifier so you can't be called anti American or unpatriotic etc.

Weaseldog said...

This is America.

If you're running the top banks and mortgage firms, you spend your days gambling with other people's money.

If you win, you reap rich rewards. If you lose, the taxpayer covers your losses and you reap rich rewards.

What a country!

Mariamariacuchita said...

How much chicanery was really going on in these agencies that they were trying to cover up?

an average patriot said...

It is such a friggen set up I am sick of it. The average American always loses. It pisses me of that if you are a regular stock holder your shares are worthless but "preferred" holders will be protected.
I am friggen sick of this obvious lying and raping of America. Betmo just sent me something that really wows me about Rice in North Africa but not for the reason the article says! Blow me away now I know! McCain is in and we are screwed!

Barry&Julie said...

It is so sad that were a people with leaders that have no ears for us. And what is even worse, is when we tell other people what we see. They are so dumbed down they won't even think for themselves. I like what Jesus said Matt 16: 2-3
2He replied to them, When it is evening you say, It will be fair weather, for the sky is red,

3And in the morning, It will be stormy today, for the sky is red and has a gloomy and threatening look. You know how to interpret the appearance of the sky, but you cannot interpret the signs of the times.

an average patriot said...

That is what I kept wondering! As soon as it was mention we would bail them out back when I knew it was only a matter of time. I heard that $25 billion will be more like $250 billion.
The bankrupting of America is almost complete and Cheney and Rice have been working on entrapping Russia and completing the war end.
In its entirety this manufactured perfect storm will come to a head soon then the shit will really hit the fan!
I will write about that today as soon as I can get to it!

an average patriot said...

I have been saying for years what is going and no one has listened. It will come to its awful fascist head soon!
Welcome by the way! That is interesting! That I would say is where red sky in morning sailor take warning red sky at night sailors delight came from. Take care and stay in touch!

Weaseldog said...

After starting a response on Robert Reich's blog, some new angles occurred to me.

Funny how much becomes clear, when we start trying to explain something else. This step by Henry Paulson was a strong move. With this move, the game is over, the public just doesn't know it yet.

Anyway, I made it the current entry on my blog.

an average patriot said...

You hot shit! I speak about this perfect manufactured head but I just Posted that this is Check mate America and it is coming soon! Hold on Buddy! Sadly we are dead on and imagining nothing!