Fannie Mae and Freddie Mac Bailout

The warnings I have been posting on this blog for years starting to happen with this bailout. This is significant because these organizations are so large and are connected to the economy in such a profound way. Excessive debt destroys economies. People have been laughing at Ron Paul and his warnings. People laugh at me. They just don't listen, because our society does what everyone else does without thinking it through. Debt has become a norm, so much that people even believe it is foolish to pay off your mortgage because of the tax deduction. They don't do the math, they just listen to what people tell them.

Here are some comments about what this bailout is going to cost us from people who are paying attention:

“1.6 Trillion sounds about right, but they will stir things up, and mix more in, until it will be hard to tell, because it is an ongoing train wreck, and it never will be paid off, because it will destroy the dollar, so the real cost is a free America.”
— John H.

“Every bailout I’ve ever seen was at least a factor of 10 higher that the initial estimate. I’m betting on the 2 trillion number myself.”
— Steve O

“We’ll never know because by the time the numbers are in, we’ll be on to the next financially engineered crisis. But for a number — at least $1.3T.”
— John M.

The best way to protect yourself personally is to be completely debt free, including your mortgage, otherwise the future of your home ownership and financial well being may be in jeopardy. The cost of this will affect all of us no matter what we do, but if we are personally debt free we have a better chance of financial survival. Watch closely what happens. After this next election, we may be in for a big surprise, depending on who wins. It may not be immediate, it may take a few years. That comment above about losing our freedom - don't discount it too much. There may be some truth in that prophecy.