Can You Say Crash?

The stock market took a major dump today. It is amazing how investors respond when they do not get the news they want. There was a huge drop followed by a free fall after Congress decided not to pass a $700 Billion investment in Clinton backed junk mortgages. I say Clinton backed because it was the government enforced lending practices during his first 4 years that started this debacle. Forcing lenders to provide mortgages to people that had little or no ability to pay them back is just bad business. Huh, looks like the bubble got a little too big.

Now middle class America is once again forced to clean up a mess started by the Democrats trying to buy votes. Democrats are more than willing to throw tax payers money at enlarging their base. We have welfare, medicare, food stamps, and now a huge hole where our investment firms used to be. All due to having to compete with Fannie Mae and Freddie Mac. These government sponsored corporations (that is a loose term) made lending nearly impossible for banks to compete with by providing low cost mortgages to non-qualified borrowers. Try competing with free. What you get is a house of cards that is still falling. Hurricane Katrina looks like a tea party compared with this.

Now you have the carcasses of numerous banks and brokerage houses strewn everywhere and a government wanting to spend more of the tax payers money to bail them out. Where is the outcry at the utter mismanagement of Fannie and Freddie? The scope of their crime dwarfs the Enron failure. Why do we not see the presidents of those corporations being dragged though the mud like Kenneth Lay? Could it be that members of Congress are major supporters and that they are hiding behind the same of song and dance that politicians always use? Find a scapegoat and keep the spotlight on them. Avoid being dragged into the light. Like any good vampire, they will suck us dry and move onto livelier corpses. $700 Billion. That is a lot of green.

Icool

Cobb