Part Two: Setting the Record Straight

In Part One of this series, we looked at causes of the mortgage meltdown in terms of Wall Street.  They aren't the only one's with dirty hands, our corrupt Congress is to blame too. While Obama, Pelosi, and Barney Frank blame "Bush and the Republicans" with the Elite Media parroting along, the REAL story is quite different.

Fannie Mae was created as part of FDR's New Deal. It was created to buy and secure mortgage debt, so the banks could clear their books and write more loans. In 1968, Congress took Fannie Mae's debt off its books by privatizing the company (but still let them keep their government charter). Then in 1970, Congress created Freddie Mac, thinking that way, Fannie Mae couldn't monopolize the secondary mortgage market. These two companies are known as government-sponsored enterprises (GSE). A GSE is a publicly-traded, private corporation created by Congress, and backed with an implicit government guarantee.

As you read the rest of the story, keep the following words by Barack Obama on September 15, 2008 in mind.
"[The Republican] philosophy that lets Washington lobbyists shred consumer protections and distort our economy so it works for the special interests instead of working people ... Confident of their clout in Washington, they made hundreds of billions in bad loans, knowing that if they lost money, the government would bail them out ... And they were right. The gambles did not pay off, our economy went into recession, and the taxpayers ended up footing the bill. Does that sound familiar?"

If Barack Obama was speaking the truth, he'd call for Congressional hearings and a criminal investigation on Fannie Mae and Freddie Mac, after all, he's quick to use the Department of Justice to silence his critics, so you'd think he'd want to root them Republicans out!

But he doesn't call for any such investigation ... because it would destroy his political machine and aspirations to rule the world.

Here's what REALLY happened ...

Barack Obama is dangerous.  It's just that plain and simple.

Thanks to NakedEmperorNews for yet again, uncovering a now (not so) shocking audio of Obama speaking candidly about his plan to bankrupt the coal industry. Maybe this will wake people up!

Below you'll find the audio of Obama talking about the coal industry, and then another NakedEmporerNews video clip of him stating that the government needs to send out "price signals," to make people "change" their behavior. Obama, the One, the Puppet Master ...

This is "'Change' You Should Run From!" Barack Obama and his elite friends (and we all know who they are) will now decide what behavior they want out of "us" and use the markets to manipulate "we the (little) people."

I'd vote for Gore/Kerry if it meant keeping this guy out of office!

Writing to you today (as always) from my humble home in the beautiful state of Michigan, and ... ...

Part One: What's the Emergency?

Do you remember the old Wendy's commercials, "Where's the beef?"

Well, I have a similar question:
"Where's the proof" ... that the world would collapse without the "emergency" bailout?

Treasury Secretary Hank Paulson, President George W. Bush, and Fed Chairman Ben Bernanke suddenly, out of nowhere, warned us all of certain Financial Armageddon if Congress didn't pass a $700 billion government bailout package immediately.  Members of the House of Representatives were even prodded with threats of Marshall Law, if the bill wasn't passed right away.  They need $700 billion right away!

Why?  Why $700 billion?  How was this number calculated?

Yesterday, John McCain announced his "Pension and Family Security Plan."

Yes, ...

There is nothing "conservative" about the bailout. There is nothing "conservative" about the crony-capitalism it protects either.  ...

The notion of buying low and selling high is easy in thought and hard in practice. Success breeds ego and misery loves company. So when we're all buying, we're all bragging, and when we're all selling we're all crying together. This demonstrates extreme thought and behavior. We're more comfortable doing what other people are doing - perhaps even not in our own interest.

For example, investors are currently willing to accept - 5% inflation-adjusted real returns in exchange for the illusion of safety. This demonstration of extreme fear is a result of billions of dollars chasing the protection of short-term government t-bills. They believe by doing this their cash will retain it's value, when in fact it is losing value at the rate of inflation. That's because the herd rush into the perceived safety of the t-bill, has pushed it's yield down next to nothing. This is clearly irrational, yet many people seem compulsively drawn together to do this. There is comfort in a crowd - it is easier to be wrong along with everybody else, than it is to stand alone.

The bill that became law this week to save us from alleged Armageddon, is an abomination of everything ...

Jonathan Hoenig explains perfectly the "real deal" in the sudden need for the federal government to take-over everything.
There was a time I wrote extensively about promising sectors and stocks. I looked at companies' new products, analyzed earnings and tracked moving averages of securities big and small. I miss those days.
In recent weeks, those fundamentals have all but ceased to matter now that politicians are pulling the economy's strings. From restricting trade, such as through the short-sale ban that was just extended, to outright seizure, as was the case with AIG (AIG: 4.39*, +0.37, +9.19%), we are witnessing the biggest expansion in government power since the New Deal.
Power is precisely what the "bailout" bill, which cleared the Senate Wednesday night, is ultimately about. Uncle Sam wants even greater control over the economy, your money and your life.

Wells Fargo struck a deal to buy ailing Wachovia with no government assistance. Citigroup had been in works ...

Well ... almost.

On Monday, in a rare show of support for the people they represent, the United States House of Representatives said "NO!" to Treasury Secretary Henry Paulson's $700 billion fleecing of the American taxpayers.

This was monumental!  Here, in "modern times," the people we sent to Washington to actually embraced the American revolutionary spirit!

The leaders of both parties, major newspapers and think tanks, the mainstream media, college professors, large corporations, and even Jim Cramer were all in cahoots to force American taxpayers to artificially support failed businesses and their wealthy executives.  But in a BOLD move, the House of Representatives said "NO!"

The Senate added some 400+ pages to the bill and passed it again last night, and the House has the opportunity again today to knock this bad deal for American taxpayers down.  Will they?  I don't know ... and I fear the worst ... but the original "NO!" vote gives us reason to celebrate, because it reminds us voters, that "we the people" can change Washington and break-up the collusion of career politicians, large corporations and the federal government.

Oh boy ... yes indeed! The politicians are going to come to the rescue!

The Washington Elite promise ...

There's quite a bit to cover in the current banking debacle ... how, why, who, and what to ...

Neil Cavuto interviews Rupert Murdoch about his New York Post endorsing the McCain/Palin ticket.

...

Please take 18 minutes and watch Yochai Benkler, author of "The Wealth of Networks," talk ...

By now, you've all seen the video Paris Hilton made in response to the John McCain ad.  Personally, ...

Let's face it ... it's very hard to find a politician who understands anything today.  They're driven by ...

Prices at the gas pump keep climbing higher, and it's nippin' people in the old pocketbook. So ...

June 6 (Bloomberg) -- Gold jumped the most in six months after the U.S. jobless rate had the ...