Will Grigg?s Liberty Minute

September 9, 2008

Amid the unfolding economic crisis, every weekend has brought at least one bank failure. News of the latest major taxpayer bailout usually occurs during the weekend, as well. So it was that on September 7 Treasury Secretary Henry Paulson announced the federal rescue of the mortgage giants Fannie Mae and Freddie Mac.

Paulson said that the government will spend up to $200 billion to keep Fannie and Freddie in business. But the actual size of their combined liabilities is more than $5 trillion, which is now the responsibility of the U.S. Treasury.

The bailout of Fannie and Freddie, notes leading economic analyst Mark Zandi, amounts to the nationalization of the entire mortgage market, with the Federal Housing Administration and the newly nationalized Fannie and Freddie now either backing or issuing three-quarters of all mortgages.

Is it any surprise that legendary investor Jim Rogers now describes the US economy as ?more Communist than China??

Let us take back the liberty wherewith Christ has made us free.