US Gov Takes Over Housing Market

Fannie and Freddie Financially Finished - Taxpayers to pay the billIt was something we predicted weeks ago, the crash of the market, banks and eventual bailout of the bankers by their partners in the US Government. While turning a blind eye to the expanded liabilities and massive devaluation on the dollar the US government has entered the mortgage business. Broke homeowners may be happy that their homes may be salvaged by taxes but when everyone pays for someone else’s mistakes something is wrong. Where else in life can you spend billions of dollars of money you don’t have and then take your big paycheck and leave gracefully as US workers take on your $75 trillion in mistakes?On Sunday, with the authority given by Congressional representatives the US government took over Fannie Mae and Freddie Mac, two private banks set up in the last great depression who have raped the economy of over $2 billion a month for over a year now. With over $14 billion dollars lost in the first 6 months of this year the multi-trillion dollar debt of the monsters was about to collapse into the dust it came. US taxpayers relieved the debt burden from the private bankers, allowing them to depart with their profits as government bureaucracy sets itself up to apply its own brand of streamlining.The US taxpayer seems unconcerned with the debt it has taken over, as the amount of dollars will inflate devaluing the currency even more. Money today is of no value other than the value as a stock certificate. You are buying into the productivity and future of a country. The USA’s only profitable sector are multi-national corporations whose bottom lines are inflated using slave labor in China and the Far East to make production. The housing market is a false bubble of wannabe speculators caught with their pants down as bankers encouraged outrageous loans with no chance of repayment.These two giants are not the last and the bank failures are mounting like a tsunami about to wail on the US economy. The next one to go is the long-suffering Lehman Brothers. Lehman brothers are frantically trying to find someone to support its portfolio of failed financial instruments and can’t find anyone. I guess there are no more suckers born? It will now be left to see if the government will bail out the fourth of the nations big banks to fail this year?This is only the tip of the iceberg, you will watch runs on the banks by end of the year. We think the government will continue to support the failed economy through the elections and after that will no longer be capable of holding the gates back.As an investor what can you do? Solid currencies like gold, silver, or platinum are encouraged when they go into corrections. Get out of dollars, get out of US investments or be caught in the further plunge. Alternatively play the down market. Puts in the banking sector, building sector as well as production sectors like automobiles and major appliances. Look for growth in government military and domestic weapons manufacturer. You can be sure that the US government will continue to push war spending over domestic so go with the trend. Either buy the big weapons or mercenary corporate stock or invest in national providers of government services like Wackenhut whose growth within the US criminal system will outpace any company without government contracts.This is a time of great conservative investment and holding onto what you have. The only legitimate value left is in the precious metals and if you can hold there you should.