Scares the Crud Out of Me

The most recent news of the government taking over Freddie and Fannie may come as welcome relief to some, it scares the crud out of me. Here’s yet one more way that our government can have a hand in our business, our finances, and it is certain to be an unpleasant one. Every time the government is in control over a financial issue, they consistently demonstrate that they have no decorum in conducting themselves with any sense of prudence. Social Security. Medicaid. FEMA assistance. Pork spending. And let’s not forget the true 800 pound gorilla that’s been around since the early 1900’s, the suspiciously formed Federal Reserve. So now we have the Federal Reserve pulling all of the strings of our currency circulation (whilst arbitrarily eliminating any reporting of just how much currency is in circulation at one time), the FDIC taking over control of various banks that have mishandled their funds, and we’ve now got the U.S. government acting as the nation’s primary mortgage lender. Geesh. If that’s not a recipe for disaster, I don’t know what is. The more of our financial freedoms we give control to our government, AND to non-elected officials such as those that run the FDIC and the Federal Reserve, the less free we are indeed.

To read that Freddie or Fannie did not see the mortgage bubble coming is ludicrous. These are learned and highly educated individuals entrusted with this responsibility all these years. Of course they saw the writing on the wall. They either had a back up plan that didn’t pan out very well, or they chose to ignore the responsibility that this problem they created would require. You simply cannot believe they acted in ignorance. I’ve got entry-level administrative personnel that can forecast better than that! I’ve got nothing more than a high school education and yet over 3 years ago I bailed out of the residential industry to get into commercial because the writing was on the wall way back then. In other words, it doesn’t take a brain surgeon—or at least a college educated economist—to see that there was trouble brewing long ago with the credit given freely to so many with such unrestrained finance terms.

Here is yet one more reason for us to heed ongoing counsel of the wise to get out of debt, including our homes. We’ve got to start looking at our homes as our places of refuge, not a credit line.

Copyright 2009 Kellene Bishop. All rights reserved. You are welcome to repost this information so long as it is credited to Kellene Bishop.