The U.S. Treasury and the Federal Reserve are stepping in and providing liquidity through the Federal Reserve to Fanny May and Freddie Mac, two publicly traded companies that hold the liability for $5.3 trillion, half of the mortgages in the U.S. In addition President Bush is proposing that we, the taxpayers, buy stock in Fanny Mae and Freddie Mac in order to further prop up the two firms. Analysts estimate that Fanny and Freddie could incur $1.5 trillion in losses on their current holdings. This $1.5 trillion would be added to our current federal debt of $9.4 trillion then figure another $163 billion of annual deficit spending and another $600 billion on the Iraq and Afghanistan wars by the end of 2008.
Bush took office with a debt of $5.8 trillion. If you were a banker and someone brought you this kind of financial statement would you lend them any money? Could this be why the U.S dollar has lost 55% of its value over the last eight years? Oil is priced in dollars. Could this be part of the reason that gas has gone from $1.38 to $4.00 a gallon over the past eight years?
I have thought for years that I was a Republican. If John McCain is a continuation of Bush Policy I don’t think I will be able to afford to be a Republican. I’m certainly not better off then I was eight years ago, nor is our country.
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