Wednesday, October 1, 2008

The truth about Fannie Mae and Freddie Mac

It is about time that McCain tries to get the truth out on this. The Democrats are getting a major pass by the media and until this ad, the McCain team was letting them walk as well. I think that Nancy Pelosi blew it big time with her partisan attack on Republicans while trying to pass the 700 billion dollar bail-out, in essence blaming them and GWB for the current financial mess when in point of fact, it was Democrats that both started this mess and purposely stopped attempts to head it off.

I would rather not see any "rescue plan" pass and let the system correct its self. More government intervention will just make things worse especially intervention done quickly, without proper thought to the results. I don't think the president or McCain have done themselves any favors pushing for a speedy fix.

I would rather congress do nothing but if they really want to try and fix this, how about giving everyone that owned a home at the beginning of 2008 $10K instead of the banks $700 billion? It would be a whole lot cheaper and would put the money in the hands of the people that can do the most good with it. People would do one of three things with the money, all good. 1) some would pay bills (including mortgage payments) with the money. 2) some will save the money. 3) some will spend it on stuff. Regardless of which or in what combination, these actions will put more money in banks and into the economy. Let the bad loans fail though some will be salvaged by the $10K. In the hands of consumers, the money will go a lot farther and be a lot cheaper than a $700 billion gift to the big lending houses.

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