Unintended consequences!

This EESA 2008 (H.R. 1424) as it is now called will be the mother of all purveyors of "the law of unintended consequences!" The social engineering of the CRA (do your homework DYH) by the Clinton Administration, the packaging of these toxic mortgages by Wall Street into CDOs and SIVs (DYH), addition of "insurance" CDS (credit default swaps) by AIG-types to gain AAA ratings, and then sold to all sort of pension funds, municipalities and foreign investors, and worse to US GSE (DYH), and the, piece de resistance, the Mark-to-Market rule (FASB Rule 157) as the ultimate proof of the US Government's support of the "law of unintended consequences" to try and fix the Clinton's Enron debacle.

If none of this makes sense then Google, Google, and more Google and then go to Wikipedia for most of these acronyms. The time line is very clear and all you have to do is follow the money from those doing the deeds to those that should have been watching over the deeds, and you will see why this problem occurred in the first place. It started with social engineering of the financial system as an attempt to transfer wealth from producers to consumers.

When the Ponzi-scheme came down due to real estate prices resetting and interest rates rising, there was no where to run and hide as the insured (buyers of the CDS) came to the insurers (sellers of CDS) for their protection pay-out. This caused the demise of Bear Sterns, Fannie-Mae, Freddie-Mac, Lehman Brothers, etc, and it is not over yet. Note the stock market continues to dump even after the EESA 2008 passed in the US Senate.

We are just going to see the world financial meltdown continue since this Bill will not fix the problems, but only exacerbate it beyond measure. This will require more government intervention and further regulation to where the US financial system becomes totally socialized. Remember, once risk is socialized, the government is going to want the profits as well.

C'est la vie, USA, your financial future has been damaged beyond repair it would appear.