Are Americans About to Loose Everything????
Last week our government took over our two largest mortgage companies in the country. Tonight our government took over our largest insurance company. Next we might expect our government to take over our largest auto companies and our largest airlines. You think the airlines and autos are in any different financial condition vs. AIG or FNM nor any less important to our economy? Then who knows what is next?
During this process expect millions of jobs to be lost. Yesterday, just between Lehman Brothers, HP, and EBay.....over 50K jobs will be eliminated.
Due to its ownership in Fannie and Freddie....our government will start to own more and more houses as a result of rising foreclosures. As businesses continue to shut down and unemployment rises....expect our government to own an ever increasing number of homes.
Tonight, the first money market fund ever created told its holders that they couldn't withdraw any money for seven days.....not only that when they do decide to withdraw.....the dollar they thought they had in there collecting interest is now worth only $0.97.
As more and more companies default....expect the NAVs of money market funds to decline even further as debt is the assets of MMFs.......
when people wake up tomorrow morning and learn what happened......guess what is going to happen to money market funds........you guessed it.........mass redemptions which will result in massive liquidations of debt instruments causing even further distress in the debt markets.
By trying to stop an arterial bleed with a band aid......the FED is only adding fuel the to panic fire.....if the system was simply allowed to clense itself through the tradional capitalistic process which made our country great......we would recover much quicker than the current path of government ownership of private enterprise.
Then if government deems it is in its interest to take over private businesses....why stop there....why not take our retirement accounts, and bank accounts and for that matter....why do we even need to own houses when our government can take over that as well.
A few in CAPS see what is happening.....the rest of you will feel the effects.
Evil triumphs when the good do nothing.