This Makes No Sense.
The U.S. government decided to step in and take control of Fannie Mae and Freddie Mac yesterday.
The U.S. stock market responded today by jumping higher: the Dow Jones Industrial Average closed up about 290 points or 2.58% and the S&P 500 was up 25.48 or 2.05%
How can piling on more national debt to “bailout” Fannie Mae and Freddie Mac be considered a good thing for the American economy and American businesses?
True, Fannie and Freddie won’t go bankrupt immediately.
But what about the United States’ taxpayer?
Our national debt is large, our deficit is at an all time high (which means the national debt is growing not shrinking), and the automakers are next in line for their government handout.
Exactly how does adding more to the American taxpayers’ tab improve the underlying economic conditions of the American economy and, by extension, American businesses?
Call me crazy, but a “bailout” of 2 private companies with negative net worth’s by a government with a negative net worth does not sound like a solution to anything (except maybe a bizzaro world riddle).
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Uncle SameBS is not going to be happy until we are all living on the streets and looking for handouts from GUESS WHO??