CHESSNOID

If you read my blog, then you know I have been talking about the housing bust before it was in full swing and predicting a major recession as a result of it.  Of course, these ideas didn’t originate from me but from reading housing bubble/bust blogs.  They are the smart ones who would analyze the data and explain it in laymen terms.  I have  a few favorites such as Dr Housing Bubble and Mr Mortgage.  They are both actually  very insightful and just get their posts delivered to me by email.

This $700 billion federal bailout is a bad idea. First of all, it comes endorsed by the 3 stooges: Bush, Bernanke, and Paulson.  They obviously bought their degrees because they don’t have a clue of what to do and refused to take action when all the signs were there staring them in the eyeball a year ago.  We have a weak Congress with no spine, so more than likely this FRAUD plan that does NOTHING to fix the problem will be passed. I pray I am wrong!

I posted a Ron Paul video a few days ago and he explains it correctly that this plan will hurt us more in the long term.

All you have to do is look at where the money is going.  It is not being injected into the economy.  It is buying bad mortgage debt that is defaulted on.  That is why these companies are failing. They bought crappy risky investments.  Why would taxpayer’s want that crap?  We don’t so I hope Congress gets some courage and rejects this INSANE proposal and fire the 3 stooges who got us in this mess.

Look at what they just previously spent and wasted our tax money on.  All failed attempts!

Financial crisis: The proposal followed an extraordinary week on Wall Street that began with Lehman Brothers (LEH, Fortune 500) filing the biggest bankruptcy in history, continued with Bank of America (BAC, Fortune 500) buying Merrill Lynch (MER, Fortune 500) in a $50 billion stock deal and ended with AIG (AIG, Fortune 500) narrowly avoiding bankruptcy thanks to a Fed bailed in the form of an $85 billion bridge loan.

The government stepped in to aid Fannie Mae and Freddie Mac earlier this month and Bear Stearns last March.

In a continued bid to boost liquidity, the central bank said Wednesday that it had struck a deal with four nations to make up to $30 billion for loans to U.S. banks.

On a separate note, the FBI is reportedly investigating Fannie Mae, Freddie Mac, Lehman Brothers and AIG and their executives as part of a broader look into possible mortgage fraud, amid the credit market collapse.

Yes, we are in a recession and we can ride it out. We don’t need to fan the flames of more inflation like when the fed cut interest rates 7 times in 7 months earlier this year. That caused crude oil to double to almost $150 a barrel and gas at the pumps to almost $5 a gallon. We don’t want a repeat of crappy decisions by these knuckleheads to plunge us into another Great Depression.

Stealing the taxpayers’ money will not stop the current foreclosures from happening nor prevent the second wave of defaults on the horizon. This is the root of the problem and it is still unfolding. We must allow prices of homes to go down to a realistic level where Personal Incomes can actually support the Mortgage payments.