Nice Scam!

Financial Update:
As earlier reported the Fed is going to takeover Fannie Mae and Freddie Mac. They will bolster those companies capital on a quarterly basis with your and my tax dollars. It is interesting to me that most of us don't give it a second thought. Ask 100 shoppers at your local mall and I'll wager 92 of them won't know anything about the takeover. Then I'll double down and bet that 97 of them won't know who benefits from the takeover. Let's look at this from a stock trader's perspective: Those who bought the FM1 and FM2 about 5 or so years back, have either sold short or taken a bath. The stock is now pennies on the dollar and it's a good time to get in.

Those with enough political sway to enable a buy out of this magnitude aren't doing it out of the goodness of their hearts. There's a profit to be made, one of equal or greater magnitude. This is the dirty little secret. With government help those with millions sneakily make millions more when our tax dollars are used to rescue their investments. The Federal Reserve's policies and practices encourage these institutions to over extend themselves. Then by adjusting and in some cases completely reverse long time precidents, use tax revenues or credit from the Chinese to increase their investments capital worth. (probably just long enough for the Chinese to relax) Then sell short just before the next national finance disaster. Or pass on the debt to our children. Follow the money.

DaG out