I would like to introduce you to the REAL BANK OF THE PEOPLE: The United States of America. Let's take a look. Through our tax dollars we now owns most of Fannie Mae and Freddie Mac and their $5.2 trillion in guarantees/portfolios. WE owns 80% of American International Group's $70 billion or so in "credit default swap" contracts on subprime bonds. (This is not a good thing to own.) WE also own 80% of AIG outright (a $1 trillion company) including a once-top-ranked mortgage insurer, United Guaranty. WE own AIG's two mortgage banking subs, which were shrinking anyway, (not a big deal in the scheme of things.) WE own $30 billion in Bear Stearns' risky bonds. Meanwhile, Congress, Treasury and the Fed's Ben Bernanke are going to write legislation to create a "Mortgage RTC." This strain of the RTC will buy mortgages and bonds no one else wants. Now that WE own Fannie and Freddie, can WE call the shots on foreclosures? You guessed it: Nope! Not on your life! You would probably fire your investment advisor for putting you on the hook and in the tank for all of this debt right? So Wall Street must think that Congress and the Government are nuts right?! WRONG! Thursday and Friday the Dow Jones shot up almost 800 points! Of course, the ban on short selling probably helped a bit.
I just have to wonder how supposedly we have the world's best economic structure regarding capitalism...and yet what is OUR taxpayer dollars going towards? Not education, health care, or job creation...bailing out companies who's "invicibilities shone brighter than the sun in California." Or were they part of the "get extremely wealthy quick schemes?" I'm just curious about one thing though...is the US Government or my state government going to buy me out for millions and billions of dollars if I make a financial mistake running my business? I guess I now have two questions: how can we go overseas and teach other countries our way of global economics as the only way...when obviously our system can't completely handle the race to invent the new global economy itself?!