Insanity Gone Wild

You have heard of Girls gone wild, but the next story should be labeled Insanity gone wild. What does that mean, you say? Well after you read this article you will say "that's insane". Who was the PhD that thought of this deal? And better yet, is he still employed? Let me break down a few points of the article for you.

The government agreed to keep Fannie and Freddie afloat four years ago through a complex arrangement where the Treasury injects capital into the firms as needed every quarter to keep them afloat, and it receives preferred shares in exchange. Those shares pay a 10% dividend.

Well there you have it. It starts out pretty good, except for the 10% dividend. Why 10% when the common folk only gets maybe 2% interest. Okay, I know, because it was a risky loan. I mean, it is a government agency, US Treasury Department, bailing out Freddie and Fannie who are other government directed agencies. 

But the arrangement wasn’t expected to last this long. Congress and the Obama administration have taken few steps towards advancing any overhaul. That has led to perverse outcomes like the one currently facing the companies: Even if they’re profitable, there’s no mechanism for them to pay off the government–and they may continue to borrow money simply to pay those dividends.

Look at that section highlighted in red. Read it again and let it sink in until the light bulb comes on over your head. Yep, I see the lights on...you have figured it out. They may have to continue to borrow money just to pay the dividends. Now you might have thought, "well the economy has tanked further than anyone expected, so they may have to wait for the housing industry rebounds before profits return enough to pay those dividends". That is until you read this:

Fannie currently has to pay $12 billion in dividends every year. That’s more than the company has ever earned in one year.

Wow, more than they have ever earned in one year! Again, where were the PhD's and Accountants that are paid to figure these things out BEFORE they sign the contract. Anyone involved with approving this contract  should be fired.

In 2009, the Treasury Department said it would provide unlimited help for three years. But beginning in January, the companies once again will have a fixed amount of money available from the Treasury: $125 billion for Fannie and $150 billion for Freddie. 

Really, did they not learn the first time? Insanity Gone Wild I tell you. We peasants should be outraged as this is our money they play with. These actions cannot be sustained. The house of cards will collapse. 

Well 

Teenagers Speaking The Truth...

Now if we could only get the politicians to speak the truth as well. If someone would not be afraid of getting up in front of the cameras in America and speak these truths, maybe...just maybe they would get the majority of votes.

It has been a while since I have posted anything. I have been busy with personal things here at the homestead.

I have still been staying in touch with what is happening economically though as well as the slow takeover of countries by the radical Islamic groups like the Muslim Brotherhood. I will post about some of this later, but first here is a video (28 minutes) that is worth watching. Peter Schiff has been correct about many things over the years, and I'm afraid that he is spot on in his thoughts. http://youtu.be/NngxJz2aBqg

Would You Like To Get 78MPG?

Well, not for any time soon. It seems, according to this video, our gov is working against us. It is not about getting better mpg, despite what they say to the media, it is about the bottom dollar they get in taxes.

"If I wanted America to fail"

This says it all....

Let Us Look At Socialism

Class is called to order. The class will be taught by Barack Obama and Ronald Reagan. Pay attention please.




Any question? I didn't think so.

Obama Lawyer Admits Birth Certificate Forgery

Check it out here.

Wow! It seems they don't care to prove that he is a natural-born citizen of the United States. He only needs to be popular in order to be President. WTF?

Here are a couple quotes from the article. The whole article is worth a read, so click on the link above.

Obama’s lawyer, Alexandra Hill, admitted that the image of Obama’s birth certificate was a forgery and made the absurd claim that, therefore, it cannot be used as evidence to confirm his lack of natural born citizenship status. Therefore, she argued, it is “irrelevant to his placement on the ballot”.

Hill went on to contort reasoning by implying that Obama needs only invoke his political popularity, not legal qualifications, in order to be a candidate.

Hill, of Genova, Burn & Giantomasi Attorneys in Newark, made a desperate motion to dismiss the ballot objection arguing that Obama’s lack of natural-born citizenship status was not relevant to being placed on the New Jersey presidential ballot because no law exists in New Jersey which says that a candidate’s appearance on the ballot must be supported by evidence of natural born citizenship status. Only the U.S. constitution restricts eligibility to hold the office of president to natural born citizens.

Romney endorsed by Axelrod?

It seems that way.

You can watch it here.

F.B.I., Where Are You?

Why has the F.B. I. not arrested someone for this. I'm not a lawyer, but there is a direct threat to Zimmerman and some might say a direct threat of terrorism implied in this audio.



http://www.breitbart.com/Breitbart-TV/2012/04/08/New-Black-Panthers-Call-For-Race-War-Blood-Shed-Kill-Crackers-For-Trayvon-April-9th-Day-of-Action

You Want Budget Cuts?

Well, we all know that the White House and Congress needs to do something about the Federal budget deficits and debt. (I hope you all know the difference between debt and deficits) Anyway, let us get serious about cutting deficits and see what we have left to cut our debt. Here is a short video showing you what needs to be cut, just to balance the budget of the United States.