You Ain’t Seen Nothing Yet

September 6, 2008 by Frank Lynch.

A few days ago I criticized the Regulators for defrauding investors for permitting trading in the stocks of Fannie Mae and Freddie Mac.

http://www.democrats.org/page/community/post/franklynch/CxMV

Today it was announced that 9 percent of mortgages are late or delinquent. Astoundingly, One of eleven mortgages are bad.

Fannie Mae and Freddie Mac have only 3 percent equity, yet 9 percent of the mortgages they guaranteed in bad.

That means these companies are insolvent by 300 percent. And our “Broken Government” has continued to let investors be defrauded by trading these stocks.

When those people with bad mortgages become homeless, things will get much worse.

The cost to the economy and to us taxpayers for all the bank bailouts that will follow will place the US on the verge of bankruptcy.

 Home prices are going to continue to decline, which means more mortgages will be upside-down (where the mortgage is larger than the home value). That will result in even more people walking away from their mortgages, and

HOME PRICES WILL DECLINE EVEN FURTHER

for years. . . .

and years after that. . . .

New construction and home builders will suffer, joblessness will get worse, and for longer than anyone thinks.

The new President will inherit an economy that will be the worst in my lifetime.

Communist China will continue to beat the War Drums that opened the Olympics. Did you know those drummers were all soldiers?

Communist China will continue to take more of our jobs. Both candidates plans to spend billions for training workers for replacement jobs is money down the toilet. McDonalds trains its own employees.

The only source of NEW jobs will be green jobs in alternative energy, and we must really, really focus on that. The government will distort the development of alternative energy by wasting billions on inefficient but catchy names alternatives, such as solar power, which contributes as much pollution in manufacturing and disposing of the solar panels as it saves.

Free enterprise will handle alternative energy much better than the government, and much faster! Keep the government out of alternative energy.

and revenue from property taxes will continue to decline, robbing our already short-changed  schools of much needed revenue, so our children will pay the price of government lack of regulation

Please help our schools at http://www.fluni.com

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