The Virtual Vitamin

A Daily Dose of Insight and Common Sense

Will it Continue to Burn?

Federal housing regulations poured out the gasoline and made the financial markets flammable.  96% of home mortgages are now backed by the federal government.  With extremely low-interest rates and government refinance programs, risky paper is being pulled out the markets and moved to Uncle Sam’s back pocket.  His pants are now on fire and he is accusing Wall Street of arson; his new wardrobe to be purchased by the tax payers.  The proposed reforms contain no oversight of Fannie Mae and Freddie Mac who continue to play with matches.  The current bill punishes those that didn’t start the fire.  When mixing government and the markets, the compound is combustible.  A new bureaucracy does little to protect investors or tax payers.  Just look at the failed oversight by the SEC.  The laws are already on the books, and bureaucrats, to be polite, had “other priorities”.  The American people were failed by a government agency that didn’t do its job; another tax payer funded entity is the last thing needed.  Burn me once, shame on you…

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April 24, 2010 - Posted by | on Economics, on Government, on Politics | , , , , , , ,

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