The US economic Meltdown - Inside Wall Street: That Ticking Sound You Hear Out in the Mortgage Market is the FHA - by Shah Gilani
The fundamentals of economic strife based on the disastrous collapse of the U.S. housing market will not get better any time soon. In fact, what’s being pushed through both houses of Congress, even as you read this, is so dangerous that it should be immediately abandoned and revealed for what it is - a ticking time bomb labeled with the initials FHA. In the past few days alone, the Bernanke Bomb Squad - also known as the U.S. Federal Reserve - was able to defuse two ticking time bombs - Fannie Mae (FNM) and Freddie Mac (FRE) - before the full force of their explosive power could be felt. Fannie and Freddie are now being propped up and will eventually have to be taken over or put into receivership, meaning there ultimately will be damage to deal with.
Half a world away - in his new home in Singapore - peripatetic investing guru Jim Rogers blasted the federal government for its new activist approach, which conflict with the very idea of a free market. A rescue of Fannie Mae and Freddie Mac - the second federally sponsored corporate bailout in four months after the Treasury Department rode to the rescue of The Bear Stearns Cos. Inc. (BSR) in March - is shifting the cost of errant financial strategies away from shareholders and onto U.S. taxpayers. Said Rogers: Paulson and Bernanke "are bailing out their friends on Wall Street … but there are 300 million Americans that are going to have to pay for this."
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