The Sons of Liberty

Why don’t we just let the free market work?  Why do we need to give freddie/fannie an unlimited line of credit to the treasury?  Why are we subsidizing local governments to buy up properties to try and maintain over inflated home values?  How are we to pay for this 300 billion dollar bill?  I’ll tell you how.  We will be taxed via inflation when the government issues more junk treasuries for the federal reserve to “buy” up with their fake money that they create out of thin air by creating a credit on their books.  Yep, that’s how our monetary system works. 

From what I understand of this bill, lenders will be able to dump their worst mortgages most likely to default on the books of freddie and fannie at a mere 10% discount of the current appraisal of the home.  When fannie/freddie pay 90% of the appraised value of the home to bail out the lenders and housing prices continue to decline anyway (interest rates will rise, further depressing home values) the tax payer will once again get raped as the quasi government agencies have no choice but to realize the losses.  Essentially, we the tax payer get all of this toxic paper and foot the bill instead of the people who made these loans to begin with.  We’ll be taxed through inflation as the federal reserve will have to create more money as debt to bail out fannie/freddie.  When is this going to end?  I don’t know.  I suppose the easiest way to pay back debts to foreign holders of US treasuries is to print money.  Eventually, foreigners holding on to dollars are going to dump them.  They find there way back here, as they will be the only place where they can be redeemed with actual goods (we’ll be so poor from rising costs of goods, we’ll be forced to sell our assets to foreigners).  It’s already happening now.