Friday morning, the Bloomberg ticker noted two stories which caught my attention. One read "Justice Department seeks to curb prosecution of white collar crimes," Which suggests the campaign contributions are going to come to a screeching halt unless the fat cats on Wall Street, and those who benefited from the financial meltdown will not contribute to campaigns unless the heat is taken off of them pretty darn quick!
The other headline read "Banks lobby White House to save Fannie (FNM) and Freddie (FRE) preferred shares." I must say that as irritating as the first headline was, this was the one that really seemed to cry foul! To think that these institutions got their Federal backstop at the tax payer's expense, then are trying to save their arses from the inevitable insolvency and dilution of shares put me, Mr. Social Conservative, on notice. If this comes to pass, it should be classified as a high crime against the American people. I will vote for whoever is the biggest political change agent this time!
Even Alexander Hamilton, who was credited as the original Federalist, knew his limits. He understood the importance of the country maintaining good credit, servicing debt, and balancing a budget. Maybe, just maybe, this is the way the United States is going to massage the countries and financial institutions who are holding Fannie and Freddie debt. After all, we must not jeopardize the share holders who have weathered the storm, and we must, under all circumstances, keep the cycle of debt current. One day, these same countries who have come to rely on the U.S.A., the largest debtor nation in history to pay the bills may decide to invest somewhere else. Malfeasance and moral hazzard be darned. And I am certain that the Anti-Federalist Jefferson is turning over in his grave!
Stock position: None.