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Debt perception

It's hard to imagine 10 trillion. I've heard Fanny and Freddie hold about 5 trillion in mortgages and that reprsents roughly half of all the mortgages in the US. That means if you add up all the mortgage debt from the entire country....think about how many mortgages that is. Think about your neighborhood, now think about all the houses.... from Bangor Maine to San Diego California...from Seattle Washington to Miami Florida...imagine if you can the amount of money that is. That's 10 trillion. Now look at our current deficit, fast approaching 10 trillion....and our government makes believe this is acceptable.

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DEBT & deepth perception

RON PAUL is right on the money. I myself as a nobody would like to see
RON call for a paper trail accounting ,as to where the money, ACTUALLY, comes from, to finance the NAT'L DEBT. I would not be surprised & you probably would be astonished ? , to find out that those who reap the benefit of gain interest, are the same outfits that control the
roll up of NAT'L DEBT, for their own gain. $$$$$$$/ FIRST.

there was no alternative

hopefully a reasonable portion of the loans are of decent quality and the taxpayers wont have to cover too much. Ive seen estimates in the range of $300 billion if a 5% default rate occurs. Not exactly chump change, but the foreign owners of our country were revolting and the accounting was too fraudulent for even the US govt to hide. Bailing out their shareholders wasnt necessary, but backin their debt was.

No alternative my ass!

This bailout is exactly analogous to a doctor prescribing more heroin to an addict as a "cure" because, after all, if he quits his habit "he will feel bad", and we can't have that!

All it does is postpone the inevitable, magnifying the problem in the process. But then, when were politicians (or most comtemporary Americans) known for their concern for the future?

So, you disagree with one of Ron Paul's major theses

One of his major theses is that bad debt must be liquidated, not monetized.


There is no justification for the intervention

no alternative that wouldn't have punished the innocent

The collapse of the value of the securities "guaranteed" by these entities would have caused a seizure of the financial system that literally would have thrown the world into panic, with alot of innocent Americans getting really hurt for a long time as the financial world is so intertwined. I think it was no time to be dogmatic.

This does not mean I approve of such actions in general or the circumstances that arose from years of reckless financial "creativity" and irresponsible governance. But like it or not, the system is gonna have to be recreated in motion, over time, while people have lives, rather than be allowed to self destruct and take us all with it.

Every single investor who bought their paper expected, and rightly so, that the USA stood behind it. Should we have set it up that way? No. But we implicitly did, and once we could no longer deny that the accounting was beyond bogus, allowing default would have been beyond a disgrace. Sometimes even the USA can fess up to their self-serving farce for a moment...who'da thunk it?

So ill say again it was necessary, practically and morally, but what isnt necessary is to allow things to get that out of hand ever again...or assume this really "fixes" anything at all or doesn't cause its own hellish problems. Maybe that is where strong principled Paulian change can be really most helpful in the future.

And hopefully this unfortunate temporary move will finally reveal to all how bad things have gotten and who is responsible. A couple interesting economic links (not necessarily supporting this position, BTW...gotta always be willing to listen), one from the great Roubini, and another from Micheal Hudson.



I wasn't posting about the

I wasn't posting about the seizure of Fanny or Freddie really...just trying to wrap my mind around 10 trillion dollars. From now on if someone doesn't seem to bothered about our fast approaching 10 trillion deficit, I'll ask them to think about their mortgage....then think about all the mortgages in the entire country, add them all together into one big number and that's 10 trillion. That's how much their children and grandchildren are in debt not even counting the 400k per household for the unfunded SS and medicare liabilities. How do people see this ending? Every thought I have about this brings on severe depression and others around me seem to not even think about it.

Miamisburg, Montgomery County, Ohio

a scary thought indeed

I think if you look at that number along with the demographic crunch we are looking at in the next 10-20 years and the dysfunctional political system, its obvious that massive "defaults" on the obligations will occur. What can save us? The citizens taking over the government (whatever your political orientation, it is our ONLY tool, we can use it or be talked into throwing it away into the hands of those who are impoverishing us) and alot of principled, shared sacrifice. It may take an epic collapse to get it started, but I think it can happen.

Yes, and Dr. Paul

is trying to get the candidates to discuss this among other important issues that affects our future. Peace

"We can see with our eyes, hear with our ears and feel with our touch, but we understand with our hearts."