(link for subscribers) http://www.youtube.com/watch?v=O8Z1H6Q-vhM
Nineteen (19) words. Yet, so much of the potential for happiness or despair is wrapped up in the execution of that charge.
The “easy money” policies of The Fed, along with gross mismanagement of Fannie Mae and Freddie Mac, over the last few decades culminated in the real estate bubble which burst in 2008. I remember regularly receiving offers by mail and fax for easy 110% home financing. In Florida, at the peak of real estate fever, homes would sell within hours of listing and new developments sold out before even the first foundation was laid. I remember thinking, “who is buying all these homes?” As unsophisticated as I was, I suspected that the gravy train could not last. And here we are. There’s no gravy on my chin. How about yours?
Now The Fed does not act entirely independently. Clearly, those Mandarins test the wind coming from the White House and Congress. Monetary policy reflects the goals of our politicians. Those goals reflect an electorate increasingly reliant on government weal. We only have a trillions dollar national budget because those in power think that most of us would rather have it than not. Let’s be honest, pork goes to people. Even if the pork goes to a corporation, that corporation has employees, shareholders, directors. The money gets to them in one manner or another.
It’s not just welfare recipients. It’s Amtrak, National Parks, Public Libraries and Schools, Museums, Symphonies and Theaters. Many get at least some funding from Uncle Sam. To keep it all going, The Fed keeps the presses rolling. Listen closely, you can hear them.
In conclusion, we can point our fingers at Barry O, or The Federal Reserve, or the men and women on “The Hill,” but in all honesty, we’ve done this to ourselves. Can we fix it?
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- Video: Time to end the Fed? (hotair.com)
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- Key House Republican moves to kill Fannie, Freddie (reuters.com)
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- FannieMae and Freddie Mac Executives – Possible Sanctions (axsmithlaw.wordpress.com)
- DealBook: Freddie Mac’s Former Chief May Face S.E.C. Action (dealbook.nytimes.com)