The Government take over of private business

http://biz.yahoo.com/nytimes/080711/1194793612725.html?.v=4

The article above reports that the government is discussing a take over of Fannie Mae and or Freddie Mac. These companies are publically traded companies, at least until the end of today or sooner. Speculation like this will tank the shares of these companies, because there will be no return on the investors money. Thus, making a takeover by the government sound even better to the mushheads of America.

This is part of the slippery slope towards socialism/communism. This is a way to have the government takeover the free markets. Reporters like these guys have been advocating this for many years and have lulled the mushheaded people into thinking that this is good for them. Just like universal healthcare would be good for them.

Of course, the CEO's of both companies will most likely do or have been doing whatever it takes to have the government take over their companies. This helps them. They will be able collect their outlandish pay, for which they didn't earn (the drove their companies into the ground). All paid for by the American taxpayer. These guys at this point are not beholden to the shareholders or the boards. All they see is there pay check not bouncing on pay day.

This will set another precident. That the markets really won't take well. That the government, if sold right, will come in and take over your company. Thus, destroying the value of the company and destroying the life savings of over 75% of the American public. As I type this the DOW is down 106 points and commdities are up. That means the market is definiately reacting to this and to the developments in the middle east. You know something is up when gold is up almost $25.

By announcing that a government takeover the largest mortgage backers, they have set the stage for the markets value to further erode and that the commodities markets to raise. Thus, higher priced fuel, food and other necessities of life. Are we really on track to becomming Germany of the 1920's and 1930's? Inflation that cannot be controlled and thus electing someone to the Presidency who just says the word "hope". I might be on to something here.