Socializing Risk, Privatizing Profit

The Fannie Mae Housing Bailout Blank Check Save the Well-Connected Investors Bill just passed the Senate 72-13.

What does the bill do? Karl Denninger puts it best:

"Henry Paulson is about to be given an $800 BILLION dollar blank check in the form of an increased Federal Debt Ceiling which he can spend on Fannie Mae and Freddie Mac IN ANY WAY HE CHOOSES, INCLUDING BUYING THE CRAPPIEST LOANS THEY HAVE AND STICKING A ONE HUNDRED PERCENT LOSS, $800 BILLION WORTH, ON YOUR TAX BILL.

A huge percentage of the debt issued by Freddie and Fannie - about $1.5 trillion worth - is held by foreign central banks. Paulson is proposing to bail out the Chinese and Japanese governments with our tax money!

Paulson SAYS he will "protect the taxpayer."

THE BILL ALLOWS HIM TO SCREW YOU WITH ABSOLUTELY NO RECOURSE."

Oh well. Now Shrub will quietly sign the thing.

What's another trillion or so in taxpayer liabilities? We'll all have overpriced houses and gas will be $15 a gallon and milk $20. Hello Zimbabwe.

Interestingly, all 13 'nay' votes were Republicans. There are a few people in Congress who get what's going on apparently (too bad only 13). The Democrats are amazingly so incompetent and corrupt that they may actually be able to snatch defeat from the jaws of victory this November.

Worst of all: 15 Senators couldn't be bothered to vote.

Including McCain, Obama and Bunning. Nice.

Bunning was the bill's loudest opponent, but he couldn't be bothered to even vote? What a dick.

The taxpayers are screwed.