Jumping into the Poole

Looks like one of the former Fed members agrees with my post from yesterday. Not that I respect the opinions of members of one of the most crooked organizations in the history of the world.

Chances are increasing that the U.S. may need to bail out Fannie Mae and the smaller Freddie Mac, former St. Louis Federal Reserve President William Poole said in an interview. Freddie Mac owed $5.2 billion more than its assets were worth in the first quarter, making it insolvent under fair value accounting rules, he said. The fair value of Fannie Mae's assets fell 66 percent to $12.2 billion, data provided by the Washington-based company show, and may be negative next quarter, Poole said."

This is what I call a major conundrum. Without the GSE's backing mortgages, the housing industry will completely collapse. But, the GSE's can't afford to continue taking loans and remain solvent in the current conditions, regardless if things get worse, which they will and everyone knows. This is what happens when you recklessly allow banks and financial institutions to take on risk without regard to consequences. This is squarely the blame of the Fed, Congress, Big Business, Democrats, Republicans and the list goes on and on. There aren't enough fingers to point at all the people to blame for this mess and the sad thing is the only people who are in position to try and alleviate this mess are exactly the people who are responsible. Do you really think there is any chance that any sensible policies or decisions will be made to help this fiasco? If you do, I want some of that blissful ignorance to be implanted in my head.

Too many fools, too many shoes and way to late in the game to stop it. As I've said before. Protect your assets, eliminate debt, stay liquid and mobile and be prepared for the worst. Things are gonna happen over the next 3 years that nobody is ready for.