Almost 9 years ago to the day, Steven A. Holmes of the NY Times wrote an article that predicted the mess in which we find our economy. The article was titled an anything but scary "Fannie Mae Eases Credit to Aid Mortgage Lending," and it most vividly states that,
Maybe the article should have been "Fannie Mae Gives Homes Now, Steals Hearts Later;" "Fannie Whippin' To Be Had: Just You Wait and See;" "When You Touch the Fannie, Payback's Hell!""In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn [HELLO, were are right here 9.30.99!], prompting a government rescue [beam me up $700b Henry P] similar to that of the savings and loan industry in the 1980's."
While the prediction was dead on, I do not think it could have predicted, due to the disturbing amount of greed that ensued from 1999 until now, the potential Global Recession that is being discussed.
Since the stock market tanked nearly 400 points on Monday (up from -800), went under 10,000 points for the first time since 2004, and dropped another 508 points (-5.11 percent) to land at 9,447 Tuesday, I wonder how many of our Congress peeps are rethinking their Yay vote on that little $700,000,000,000 bill of last week? So much for the idea that Making It Rain will solve the years of Wall Street's and Congress' greed! Imagine how many times Pacman Jones could have made it rain with $700b.
And now that Bernanke hints that interest rates are likely to go down again, I have to wonder how long it will be before those of us who save will be rewarded with higher interest rates. Americans should revolt and SAVE anyway! Stop spending! SAVE your money! Buy things when you can pay cash for them! Do away with credit cards! Stop paying the self imposed Stupid Tax! Start figuring out how to Get Out of Debt and being financially responsible!
Get Out And Romp
Posts
1 comment:
Straight up my DAWG!! Outstanding analysis. I could not possibly agree more. The final dagger does seem to be that Ben and the boys at The Fed are going to keep rates low for all those folks who throw good money after bad. Savers of the world unite. Cast off your debt. We're working hard on a 15yr mortgage that'll be paid off in less than ten years and I'm psyched about the prospects of being in a largely cash position!
Post a Comment