ANSWERS: 2
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The primary reason that the decision was made to Nationalize Fannie and Freddie was one of liquidity in the credit markets. To paraphrase Nancy Pelosi, "the party is over" ... if no one can borrow money to buy a house, that also means that your employer will not be able to borrow money to meet payroll or buy raw materials. Do you see how quickly a "Wall Street" problem becomes a "Main Street" problem? I see that the corrupt Sen. Dodd has rejected the first draft of the $700 billion bailout, which apparently did not contain enough pork to satisfy his special interests. Pray for the taxpayers. ;-)
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This whole situation is a bunch of smoke and mirrors! Why should the treasury of the USA go to the Federal Reserve to barrow "money" to essentually bail out a banking organization and have to pay interest on the "money" barrowed! Think about it, the Federal Reserve is not federal nor is it a reserve; it is a private organization owned wholey by the banking cartel. They create "money" out of thin air and loan it to the government of the USA who must pay interest on those funds barrowed. So why must the federal government of the USA have to barrow money from a banking corporation to pay a banking corporation. This is all being done to collapse the current currency used in the USA to bring in the Amerodollar. If you doubt my reasoning, please read this information: http://www.lovethetruth.com/federal_reserve.htm
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