Today the financial headlines screamed that the U.S. government had taken over Fannie Mae and Freddie Mac, but most Americans paid no attention.
But they should have.
The American Dream has become an American Nightmare.
Fannie Mae and the Federal Home Loan Mortgage Corporation (Freddie Mac) own or guarantee about half of the 12 trillion dollar mortgage market in the United States.
They have collectively been responsible for more than 80% of new mortgages being issued in 2008.
Fannie Mae reported total assets of $882.5 Billion in 2007.
Fannie Mae and Freddie Mac are two of the largest corporations in existence, and if they were countries, their GDP would be bigger than most of the nations in the world.
And now Fannie Mae and Freddie Mac have FAILED.
Posted below is a chart of Fannie Mae's stock price.
Do you notice a trend?
Fannie Mae and Freddie Mac are the absolute heart of the mortgage industry in the U.S. If they have failed, do you think that is a good sign for the U.S. economy?
The next chart shows the reserves of the banks in the United States. Do you see what has happened? The reserves of our banks are gone!:
The next chart shows the insane amount of money our banks have had to borrow from the Federal Reserve just to stay afloat. Even with all of this borrowing, 11 banking chains have failed already this year.
10,000,000,000,000 dollars in debt!
Will the current generation of Americans repay that debt?
No, the current generation seems determined to go even deeper in debt.
So, that means that Americans are dumping this debt on to their children and their grandchildren and to generations beyond that.
That is inexcusable!
America has sold their children and grandchildren into economic slavery forever.
How would you feel if you were a little child and you discovered that your parents had run up a million dollars on a credit card in your name, and now you had to make interest payments on that credit card for the rest of your life?
America's children and grandchildren will be working ALL of their lives to pay interest on this ridiculous debt. Their labor will go into serving the owners of this debt, and there is no escape.
America has had the greatest party in the history of the world and it has fueled this party on massive amounts of debt, but there is really bad news.....
The party is ending.
The reserves of America's local banks are gone. The financial institutions have borrowed an insane amount of money from the Federal Reserve this year just to stay afloat. America's financial system has never experienced a crisis of this magnitude.
The biggest debt bubble in the history of the world is beginning to burst.
For decades Americans have lived like kings and queens.....enjoying the biggest party the world has ever known.....but financed with ever increasing amounts of debt.
Once upon a time, the United States was the biggest creditor in the world. But those days are long gone. Now America is the biggest debtor nation to ever exist on the earth.
America was the wealthiest nation in the world, but that was never enough. Americans always had to have a bigger car, a bigger house and an endless supply of "stuff". So the American government piled up debt, American companies gorged on debt, and Americans made using credit cards into a national pastime.
And if you include the future liabilities that America's government has committed to such as future Social Security and Medicare payments, then the total debt of the federal government is over 59 TRILLION dollars.
59 TRILLION dollars!
Now that many of America's jobs have gone overseas, the price of gasoline is shooting through the roof, and tons of people are losing their homes, do we find that Americans are learning their lesson?
Not at all.
Instead Americans are squeezing everything they possibly can out of their credit cards. Total credit card debt in America is now over 790 billion dollars, and it is increasing at a rate which is four times faster than earlier this decade.
Instead of showing restraint, Americans have jammed the accelerator to the floor.
Prices are increasing dramatically while wages are not. Jobs are being outsourced and factories are being closed. America's largest banks and financial institutions are teetering on the brink of failure. Homes are being foreclosed at record rates. Personal bankruptcies recently hit an all time high. And what is the answer that the politicians give America?
Spending even more money and getting us into even more debt.
It is time to face the truth.
The American Dream has gone "bye bye" and it isn't coming back.