Congress is out trying to save “The American Dream,” of home ownership. The suggestion that everyone should own their own home is probably left over boilerplate from some old real estate ad. The American Dream has turned ugly. Long ago banks demanded 20 percent down payments and it worked splendidly. Today’s younger generation has had no real reason to save money. It was sign here, and move in or drive it away. Everyone that wanted a home, got one (or two). Housing right now is kind of like a hot potato toss. Uncle Sam gets to catch the hot ones. So it is pretty obvious, the no money down home loan is still available. Our government doesn’t care about the quality of the new loans. They are more interested in having these loans serviced (by someone with a pulse) for the next 20 years.
Here is where the dream turned into a nightmare. Our government didn’t squirrel away any money to cover this big mess; it was assumed that it could never happen. For the last 35 years our country has spent more than it collected in taxes, by dipping into the Social Security tax fund. The money has been spent and we have the IOUs to prove it!
Our retirement funds are doing exceptionally well. Most people I know, can’t afford to retire, so withdrawals are not a real problem yet. On the other hand, there are banks that are too big to fail and ones not so big, 98 so far this year have failed. The FDIC is almost out of insurance funds. On top of that, Freddie and Fannie are about to go nuclear and ballistic at the same time.
Then we have these two white knights (Nothing racial here, the black knight was generally the bad dude) coming to our rescue. Ben Bernanke and Tim Geithner show up with a check book and pen. This is an absurd con game. And to give it some credibility, you hear a "Car Salesman Close" from Congressman saying, “We are robbing from future generations.” You can’t steal from people that haven’t been born yet, it is impossible. The funds are bogus. Ink and paper are no substitute for real tax dollars. It kind of reminds me of a Herman cartoon where the little kid is up at the blackboard adding the numbers 2 and 3 together. His answer is about 10 digits long and he turns to the teacher and asks her “Where do you want me to put the decimal point?”
Where did this two trillion dollars in bailout money come from? It didn't come from taxes. It has to be some sort of a magic show. Look for it, coming soon ----to a theater near you ---“Inflation Nation.”