July 13, 2008, Bookends Theme
I know, I know. The latest excuse for a Simon & Garfunkel title is the announcement by Treas. Sec. Paulson on the machinations of the government bailouts of the twin pillars of our housing finance system, Freddie Mac and Fannie Mae.
The details aren't in yet, but these two private companies that everyone knows are part of the government (sort of) are going to be part of the government (really) in the form of a taxpayer-sponsored bailout, which, we are well beyond the point of arguing with, as our entire financial structure had been based on people borrowing from the ever increasing equity in their homes to continue to prop up other forms of financial ventures, from home improvements to vehicles to just plain buying stuff or keeping up with credit cards and utilities, etc.
More and more bailouts of this variety will be required. Will they be enough to stave off financial meltdown and the resultant catastrophe? We can hope...