Bill Gross and Jim Cramer, in a joint interview on CNBC today, have called on Hank Paulson, the U.S. Treasury Secretary, for a bailout of Fannie Mae and Freddie Mac that would amount to $500 billion. That's unbelievable! No way! Bill Gross is asking for the Federal Government to shore up his bad bets and bad debt! He acknowledged that he purchased much of this debt prematurely, and now, he wants the government to protect him from the consequences of his bad timing.
In a single bailout of the mortgage industry, they are asking for the Federal authorities to engage in a bailout that would double the nation's deficit for the entire year -- in a single day! This would be the first time that the nation has increased its debt by $1 trillion in a single year! This would be unprecedented not only in size, but scope and rapidity.
Bill Gross said that he will no longer keep buying the mortgage debt. He says it's now time for the Feds to step in and bail out the industry. He is saying that he is no longer going to buy this toxic debt. Good! Perhaps then risk will once again be priced into the price of debt, instead of throwing endless and limitless amounts of money at debt that was created to simply give money away!
Why do these Wall Street heavyweights constantly call for the government to bail out Wall Street? Why should the tax payers on Main Street be forced to accept the debt burden of bailing out the garbage created by Wall Street wunderkind who know the price of everything, but the value of nothing? Why should a coal miner in Pennsylvania, or a farmer in Iowa, or a steelworker in Washington, or a nurse in Montana, be the buyer of last resort to bail out billionaire financiers on Wall Street? When does the parabolic escalation of national debt end? When our debt becomes worthless and no one will lend to us any more?
We're no long talking about debt that will hamstring our children or grandchildren. We're talking about debt so crippling that we could become the Weimar Republic in this generation, even in the next few years!
It is time to stop the madness on Wall Street! It is time to say "NO"!
We're no long talking about debt that will hamstring our children or grandchildren. We're talking about debt so crippling that we could become the Weimar Republic in this generation, even in the next few years!
It is time to stop the madness on Wall Street! It is time to say "NO"!
