The National Debt Just Doubled
I am sorry to inform you that as bad as the U.S. national debt was as last Friday dawned, it is twice as bad now. The United States Government on Friday (after the markets closed) seized control of Fannie Mae and Freddie Mac, effectively writing a blank check for the mismanagement and fraudulent mortgage lending they were responsible for.
Our children and grandchildren will see an economic system choked by the debt these two massive morons created. Basically, the American taxpayer has been volunteered to make good bad loans that should never have been made, and the entities that made the loans have been protected. The sad thing is, when I say “taxpayers,” I’m not just talking about Americans who filed tax returns in 2008, I’m talking about taxpayers who haven’t even been born yet. That’s how massive and far reaching this fiasco is.
On Saturday night, my wife, 6 year old son and I entertained some friends and their two boys, 6 and 9 at our house for pizza. As we listened to the boys playing with the Wii, laughing and joking as they played Star Wars: The Complete Saga, the talk turned to the economy and I said “I believe that 20 years from now, we’ll look at last night (Friday) as the day everything changed with the economy. It’ll be seen as the beginning of the end for the dollar, the U.S. economy and our current American way of life. Mark the date.”
I truly believe that.
One of the most outrageous elements of this financial debacle, is that the outgoing heads of both companies, Richard Syron, of Freddie Mac and Daniel Mudd of Fannie Mae have received millions of dollars in pay and stock options over the past few years, and have in their contracts lucrative severance packages.
Presidential candidate Democrat Barack Obama said that Congress must block these two fools from collecting millions as the American Taxpayer get stuck with the bill, and for once, I wholeheartedly agree with him. They should leave at best, tarred and feathered and at worst, should go straight to prison. Idiots, or con men, they should not profit while we the people cover the cost of the enormous failures.
Though most Americans don’t comprehend what just happened, it’s a very sad day. Nothing can stop what is about to befall our economy and way of life. Prepare yourself for a dramatic change in the way we live.
It will NOT be easy.
Posted in EconomyTags: Bailout, Depression, Economy, Fannie Mae, Freddie Mac, Recession