Fannie and Freddie are down this morning:
One consensus is emerging on line that the Fed is to blame for mortgage market woes:
Who Killed the Economy? – At Portfolio.com (24 Jun 2008)
The response of the Fed and the Secretary of the Treasury, the former Chairman of Goldman Sachs a leading member and presumed shareholder of the NY Fed, is to propose the Fed be given even more power:
Bernanke, Paulson Push for New Regulatory Powers
By Brian Blackstone & Michael Crittenden – Wall Street Journal (10 Jul 2008)
One possibility is to recapture the $4 trillion and gold missing from federal accounts to stabilize and replenish communities and pension funds drained by federal mortgage policies.
The Bell Tolls for the Bubble
By Catherine Austin Fitts – Solari (8 Jul 2008)
Catherine,
Is not the federal reserve at the helm of all this centralization, inflating/devaluing the dollar
with money/credit expansion and enabling all the other actors like Freddie Mae to compound it all
or is this oversimplifying?
After all having a central bank is the antithesis of a free market.
Scary stuff.
Although not surprising, given that you’ve predicted this for a long time.
I’m reminded of a prophetic book I actually read before buying my first house:
http://www.amazon.com/Coming-Crash-Housing-Market-Investment/dp/007142220X
The book outlined in detail exactly how everything would fall apart, and here it goes.
Thought you might also enjoy the consumerist.com version of the stock chart:
http://consumerist.com/tag/too-big-to-fail/?i=5023841&t=mortgages-of-the-apocalypse-are-freddie-and-fannie-going-to-collapse