Bailouts Galore

Here come the bailouts despite what the Fed may be saying, I predict they will take it up ye olde keister for several companies.

Treasury Secretary Paulson today has sought, and clearly will get, authority to stem the tide of Freddie and Fannie Mac from collapsing.

This is the key sentence from my limited scope: "The Fed said in a separate statement that the New York Fed was approved to make direct loans to Fannie Mae and Freddie Mac at the discount rate, currently 2.25 percent, charged to commercial banks."

Immediately, as soon as this has been done, every single home loan that was given to an American family or person making less than $100,000 per year should drop to 2.5%, no questions asked, no additional fees. It should be dropped to this rate until such time that each loan can be fully evaluated to see how at-risk the loan is and what type of need there really is.

As I have written before on this blog, I have no sympathy for those who bought up more properties than they should have in a blatant effort to cash in on the home market back when it was hot. I have no sympathy for those who have more than one home who have yet to pay off one of those. These are the people that should be allowed to sink like a boulder in the Pacific Ocean.

Greed should not, and better not, be rewarded with this gamut. But, much like the previous buyout of Bear Sterns by the Feds, I fear the little man will inevitably get screwed while the blue collars will only further line their pockets with sweaty wads of cash.