Saturday, August 25, 2007

Malkin Misses Half of the Elephant in the Room

Michelle Malkin sees the calls for "housing bailouts" as consumer-directed.

Well, yah, maybe.

But in fact, stuffing Fannie and Freddie with "jumbo" (>$417K mortgages) is not just "bailing out the consumers." Forcing Fannie and Freddie to take on more than $700Bn in paper is not "bailing out the consumers."

In fact, migrating lousy paper into taxpayer-backed quasi-Gummint agencies is also ....

....ta da.....

BAILING OUT BEAR STEARNS, LEHMANN BROTHERS, BANK of AMERICA, and all sorts of "investors" who purchased high-yield CDO bonds (we used to call high-yield bonds "junk," remember?).

Folks, this doesn't take a lot of intellectual firepower, and I've been saying this since the subprime mess first started ooozing out of Bear Stearns' closet. Dodd of CT. is a very well-connected major player in this. Watch what HE says and does, and for whom.

The propaganda will be ferocious--just don't forget who's going to pay. Need a hint?


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