Twitter   RSS   Email  

 How the Global Economy is Dependent on Christianity

 Why America May Never Recover From the Recession

 Save Money Homeschooling

So Much for the Governments Role Being Temporary

By: Steve Johnson

11/1/2008 - 27 Comments

In a speech Friday, Federal Reserve Chairman Ben Bernanke said that the federal government will need to continue to play a role in the future of the mortgage financing market.

As noted in an article on CNNMoney, He said, "Government likely has a role to play in supporting mortgage securitization, at least during periods of high financial stress," 

But, the financial stress of the mortgage industry could last as long as ten years and even at that point, who is going to buy up 5 trillion dollars in risky mortgage loans?

Bernanke went on to say that privatizing the roles of Fannie and Freddie at some point in the future is not practical because it puts too much risk on the economy to whether the storms of market instability.  In other words, the government will indefinitely from this time forward remain the lender and owner of a majority of mortgages in the US.

Bernanke did not endorse any specific alternative for Fannie and Freddie, but instead he gave a rundown of numerous proposals that have already been raised by Fed and Treasury officials as well as other experts.

The Government is Not Planning to Return to Capitalism

Many of the supporters of the $700 government bailout of the financial industry were under the impression that the government needed to temporarily step in to help reduce the impact of the pending recession and that after they have help the economy get on its feet, they would reduce their role and return control to the forces of capitalism.  Based on this speech today, that is not the case.  The government role in planning the economy and ultimately the production of our nation is now permanent.  The financial leaders that we gave our economic freedoms to are not planning to give them back – just as I predicted. 

Copyright © 2022 All rights reserved.

Nemesis: The Last Days of the American Republic

Like ancient Rome, America is saddled with an empire that is fatally undermining its republican government. Johnson surveys the trappings of empire: the brutal war of choice in Iraq and other foreign interventions going back decades; the militarization of space; the hundreds of overseas U.S. military bases. Retribution looms, the author warns, as the American economy, dependent on a bloated military-industrial complex and foreign borrowing, staggers toward bankruptcy.

Crash Proof

Peter Schiff has predicted the economic hardship more accurately then any other economist in the world in this book. Everything from the housing crash to the credit crunch to the stock market. Peter has a plan to help you servive the crash. Peter explains why the Wall Street investment firms are still trying to sell you stocks, and was the house prices are likely to continue to decline for years to come.

Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse

In discussions of today's economic meltdown and what to do about it, the Federal Reserve is a stealth helicopter: it never shows up on the radar. With the exception of a few esoteric specialists and those Ron Paul Revolutionaries who burst into chants of "Abolish the Fed!" Historian Thomas Woods notes in this important book, the Federal Reserve bears a large part of the blame for the mess we're in. In the first part of "Meltdown," Woods shows how both in theory and in practice, Fed policy fueled an artificial boom and is now leading us to a much larger meltdown.

Gold: The Once and Future Money

Governments and central bankers around the world today unanimously agree on the desirability of stable money, ever more so after some monetary disaster has reduced yet another economy to smoking ruins. Lewis shows how gold provides the stability needed to foster greater prosperity and productivity throughout the world. He offers an insightful look at money in all its forms, from the seventh century B.C. to the present day, explaining in straightforward layman’s terms the effects of inflation, deflation, and floating currencies along with their effect on prices, wages, taxes, and debt.