Fulcrum Ruminations

Saturday, October 11, 2008

Fannie and Freddie Fall Down Go Boom

It's been terrifying to watch the financial markets unravel these past weeks and months. Decades of bad decisions, bad policies, and bad legislation are paying off. The government is enacting a bail-out plan on a scale never before contemplated, let alone seen, with hundreds of billions of dollars in extra spending suddenly piled onto our already unbalanced budget. Debt, debt, and more debt. This money will come from where? Will be paid back how?

The bottom line is simple, gentle reader: I don't trust the buffoons in Washington to get this right. They are, in my estimation, going to make the crisis much, much worse than it needs to be with their hasty and ill-considered "rescue" plans. We are looking into an abyss. What may be on the other side is hard to determine. America could and probably will lose its preeminance in the world economic order. We're already the largest debtor nation by a huge margin. Loss of economic strength virtually ensures loss of military strength, and the Pax Americana will go the way of the Pax Britannica before it. We may be looking at several decades of world chaos.

Here's an interesting little video regarding Fannie and Freddie. While the presidential campaigns play out, the whole situation is even more politicized than it would normally be, and that's saying something. Altho there's no shortage of blame to go around for this fiasco, somehow the Republicans in general and McCain in particular are catching the worst of it. While I calculate that it's too late for anything as mundane as facts to influence the elections, I nevertheless present this for your edification. Go ahead and watch while I run out for MREs and ammunition to stock the bunker.

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