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Maxing Out the National Credit Card

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A few weeks ago, President Obama signed into law the financial reform bill.  It promises to add new regulatory agencies to oversee big financial firms and enforce consumer protections, prevent financial crises and massive bailouts, reform mortgage lenders and gives the government the authority to seize financial firms that the government deems are a danger to the stability of the economy.

Sounds great, but somehow I doubt it will work as intended.  It is another 2,000+-page bill that few have actually read.  Many farmers fear that it will be more difficult to hedge against low prices in the commodity markets.  According to the Christian Science Monitor 7/21/2010, the bill will “ensure that the fine print on financial services is clear and accurate.”  Perhaps better than instructions on IRS Form 1040, but again, I’m not hopeful.  In the same article, the Monitor states “banks and other financial companies must review the income and credit histories of mortgage applicants, to ensure they can afford payments.”  For this they need to pass a law?

For most of us, free checking will go away.

What is not in the bill is equally troubling.

Remember Fannie Mae and Freddie Mac?  They are the giant government-sponsored enterprises that were the first dominos to fall back in 2008.  They were the source of the “toxic” mortgages that roiled the markets and caused the crash of the stock market and froze the credit markets.  They are at the center of the dismal economy we are all dealing with.

Hence the financial reform bill.  But overhaul of Fannie Mae and Freddie Mac is not included.  Not even mentioned.  The past and present CEOs are not being perp-walked in front of the cameras.   No investigation is pending.  These crooks, because of their cozy connections in Washington, are getting away with it.  The former CEO of Fannie, Franklin Raines, made over $90 million during his tenure, while last May Fannie posted a loss of $11.5 billion, its 12th straight quarterly loss, with no end in sight.  That is eleven thousand five hundred million dollars, in just three months, $145 billion total loss to date, and the taxpayers are on the hook for every cent.  This is being financed by higher taxes and by selling another piece of America to the Chinese.  The national credit card is being maxed out, and we are borrowing the money to make the minimum payments.

If you take that $11.5 billion loss and divide it equally by 50 for each of the states, and take Ohio’s share and divide it equally by 88 for each of the counties in the state, it would be $2.61 million.  For three months.  Harrison County could do many good things with that much money, because out here in the country, we still think a million dollars is a lot of cash.  Evidently many in Washington D.C. have forgotten this.

I think they will be reminded in November.

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Larry Bertolino

Larry Bertolino

Owner at myLocalPCpro
Larry Bertolino is a 31 year old, U.S Navy Veteran and currently sitting on the board of Directors for the Harrison County Chamber of Commerce, as well as Harrison County Rural Transit.
Larry Bertolino
Larry Bertolino

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Posted by on August 12, 2010, 2:26 pm. Filed under Featured, John Lovejoy, Politics, ThisIsMyCounty. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry