Now even the credit unions get a bailout. That’s right America, it appears that none of our financial institutions can effectively work. The below quote is directly from the Wall Street Journal (By the way if you happen to read any newspaper, you should read the Wall Street Journal, it’s waaaaaay better than every other newspaper out there plus it reports on important stuff, unlike pretty much every other newspaper out there.)
“Regulators announced Friday a rescue and revamping of the nation’s wholesale credit union system, underpinned by a federal guarantee valued at $30 billion or more. Wholesale credit unions don’t deal with the general public but provide essential back-office services to thousands of other credit unions across the U.S. The majority of retail credit unions are sound, but they will have to shoulder the losses through special assessments over the next decade.
Friday’s moves include the seizure of three wholesale credit unions, plus an unusual plan by government officials to manage $50 billion of troubled assets inherited from failed institutions. To help fund the rescue, the National Credit Union Administration plans to issue $30 billion to $35 billion in government-guaranteed bonds, backed by the shaky mortgage-related assets.
Officials said the plan won’t cost taxpayers any money. Still, it marks the latest intervention by the U.S. government into a financial system weakened by the real-estate bust. Bad bets on mortgage-backed securities have now killed five of the nation’s 27 wholesale credit unions since March 2009. The federal government, which now controls about 70% of the total assets at such credit unions, said the surviving institutions will be reined in so that they take fewer risks with their investments.”
70% people! The federal government now controls 70% of wholesale credit unions. Plus that line back there that said: “Officials said the plan won’t cost taxpayers any money.” could be a really huge lie. The money ($35 billion or so) is being backed by the government, so that if the credit unions continue to fail and they default on their loans, then it actually does end up costing us money.
Also, the plans to ensure that the credit unions don’t fail, well those plans are coming from the government. Hurray! The government is in charge, nothing can go wrong…right?…right?…Social Security what? Anyways, that’s the situation boys and girls. The government now owns a larger amount of the financial institutions that are the backbone of the U.S. Economy…and by default the World Economy.
Does no one else see what’s happening? Or I should say, what has happened? The government owns the economy. Socialism via democracy. Wonderful. I’ll be interested to see how it fails on this go out. Unlike socialism via dictatorship I have a feeling it’s going to be a lingering slow death.
