Bail-Out of Fannie and Freddie - U.S. in World of Hurt

Another Bail-Out: Financial bail-outs go back a few years, remember the Savings & Loan crisis ?
The brains in Washington, Republican administrations in particular, and those at the Federal Reserve, once again have lead U.S. taxpayers astray and put a few more nails in the U.S. financial coffin. In short, the brains don't get it, they are poor custodians of the public trust; markets in reality are not the elixir that Adam Smith, John Keynes and followers dreamed of. Life has changed, Keynes is dead; the Fed Reserve and Washington brains have failed to understand the basic mechanisms of the modern world. It takes both capital and oil to keep modern economies humming along.

What the bail-out of Fannie & Freddie, by us U.S. taxpayers, means, is that in addition to the U.S. dependence on foreign oil, we, the U.S. have become dependent on foreign capital to keep this country afloat. One of the basic and fundamental underpinnings of an economy is SAVINGS !
Any freshman should remember this from Econ 101. So what do the brains in Washington and at the Federal Reserve do..... they promote the export of manufacturing jobs. NAFTA, GATT all the programs designed to line the pockets of the super rich 1/2 of 1% of the U.S. population with gold, have effectively killed the savings engine of the middle-class; and without domestic savings, a country, the U.S. in the instant case, is dependent on foreign capital for real growth in the economy. The Republican penchant for killing off the middle-class, and the Bush administrations folly of war, have accelerated the U.S. one-way road to dependence on foreign capital and foreign oil. Manufacturing jobs, not retail, service or government jobs, contribute real value, via personal savings, to an economy.

Washington and the Bush Administration are desperate , taxpayer bail-outs are simply additional band-aids masking a fatal wound that has been self-inflicted. The U.S. financial house is made of cards, should any of the major foreign contributors stop propping up the U.S. house of cards, by with holding capital, i.e., not buying U.S. Treasury securities, the house of cards will fall down. Thank you George Bush, your appointed designate John McCain, is poised to put the last nail in the coffin. And the 1/2 of 1% super-wealthy in the U.S. truly thank you for pulling off the greatest scam and transfer of wealth in modern history.