[Vision2020] A Bipartisan Extortion of the American Taxpayer

[Jeff Harkins]

Actually, I am just beginning a review of the entire housing market 
collapse and the ripple effect on the stock market. So far, a lot of 
fingers point to Fannie Mae and Freddie Mac.

Some colleagues of mine suggest that Bear Stearns was the early 
warning signal to the more recent events.  Others have suggested that 
the real catalyst was Enron - speculators in housing thought the 
business model used by Enron could be applied in housing - especially 
the leveraging of mortgages (primarily derivatives) similar to how 
Enron speculated in energy. There is some indication that Bear 
Stearns was significantly overleveraged.

This sequence of events will prove most interesting and may be enough 
of a disaster to provoke Americans to demand enhanced accountability 
and effective enforcement - I am confident that McCain/Palin will be 
the leadership drivers. It does seem clear that there will be no 
protected parties - there is going to be a lot of blame to go around 
- SEC, FDIC, Justice Department, DOE dada, dada, dada.

A update news flash from Fox News today - Obama received over 
$500,000 from Fannie Mae and Freddie Mac.

FWIW dept - I lived through the Carter Years (gas lines and 22% 
interest rates) and every other recession since then. Our basic 
strengths of productive labor force, great science and technology 
universities, access to scarce resources and love of freedom are all 
intact.  We will get through this mess and be a better nation for 
it.  But be sure to diversify your 401K and your Roth accounts - and 
don't spend more than you make.

At 12:06 PM 9/17/2008, you wrote:
> > Who should be sent packing for bailing out Bear Stearns?
> >
> > Probably the democratic congress.
>
>Jeff --
>
>Do you know anything at all about how the Bear Stearns bailout went
>down? There were only two actors: the Federal Reserve and JP Morgan
>Chase. Neither was the Democratic congress.
>
>Incidentally, there was an interesting story on This American Life
>this week on the epic mismanagement of the SEC by Christopher Cox.
>Heckuva job, Cox!
>
>-- ACS