Wednesday, September 10, 2008

Is the U.S. one step away from Enron

Is America turning into Enron? This week the government has announced that it will bail out Fannie and Freddie. Overnight , our debt has doubled! This is only the beginning. next in line is the Detroit auto makers followed by Lehman brothers. What are we doing? Free markets are suppose to decide what businesses fail and what businesses continue! You might ask, why should I care or aren't they two big to fail?
You better care because the Federal Reserve is going to print out billions of dollars t cover all the bailouts and we the tax payers are going to pay for it! If I owned a business ,in the private sector ,and I ran the company into trillions of dollars debt and took grave risks, I would be thrown in jail!! Our government is sending a terrible signal to corporate America that they can take unimaginable risks without suffering from the consequences! They could care less because they know "they are too big to fall". When other countries look at our balance sheet and they way we print money out of thin air, they are going to think twice about investing in America. The U.S. dollar is going to be worth pennies on the dollar when Detroit is done with us.
The big problem is the heads of The Treasury and Federal Reserve are all ex CEO's of these large investment firms. They can do what they want because their buddies will bail them out.

Why is our losses becoming socialized? Why is our economy turning into an Enron house of cards? Make no mistake, we didn't bailout regular folks, we bailed out people like China and Middle East countries who bought all of our bad debt!!

1 comment:

unbelievable rate said...

its good to know about it? where did you get that information?