The governments intervention in Fannies Mae and Freddie Mac is going to cost tax payers enormously. $40 billion of the debt that our tax dollars are going to cover is owned by Japan's Top three banks.
Wait hold up wtf did I just say?
That's right $40 billion of the debt our federal government is securing (technically it always has been secured that's the deal we made here when these institutions were formed and then handed over to bankers) is Japanese debt.
Take a quick look at global markets, Japan, Europe, Great Britain are all feeling the hit, why? In large part it's because they own our banks, including Freddie and Fanny, and since they own them they own their debt, and while they foreclose on our homes the government is, in large part covering foreign debt with our tax dollars.
This is only the beginning, the best is yet to come, most of the sub-prime bombs haven't gone off yet.
Best of all the FDIC only has $52 billion. The only way to pay for all of this is to print more money, driving down the value of the currency and leaving the fed with no choice but to raise interest rates and that's not going to be good at all.
Our dollar will be worth nothing by the time this is over, but that's fine because well be giving most of it to the government in taxes anyway. Excellent.
Guys like Ron Paul have been telling us this was coming. If the government had acted a year ago, even 2 months ago this could have been largely avoided.
Oh well it was a nice ride, had to close out sometime.
Bloomberg.com: Worldwide
Wait hold up wtf did I just say?
That's right $40 billion of the debt our federal government is securing (technically it always has been secured that's the deal we made here when these institutions were formed and then handed over to bankers) is Japanese debt.
Take a quick look at global markets, Japan, Europe, Great Britain are all feeling the hit, why? In large part it's because they own our banks, including Freddie and Fanny, and since they own them they own their debt, and while they foreclose on our homes the government is, in large part covering foreign debt with our tax dollars.
This is only the beginning, the best is yet to come, most of the sub-prime bombs haven't gone off yet.
Best of all the FDIC only has $52 billion. The only way to pay for all of this is to print more money, driving down the value of the currency and leaving the fed with no choice but to raise interest rates and that's not going to be good at all.
Our dollar will be worth nothing by the time this is over, but that's fine because well be giving most of it to the government in taxes anyway. Excellent.
Guys like Ron Paul have been telling us this was coming. If the government had acted a year ago, even 2 months ago this could have been largely avoided.
Oh well it was a nice ride, had to close out sometime.
Bloomberg.com: Worldwide
July 15 (Bloomberg) -- Asian stocks fell for a second day, led by financial companies, as concern mounted credit-market losses will widen after a report said Japan's top three banks hold more than $40 billion in Fannie Mae and Freddie Mac debt.
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