Comrades Bush, Paulson and Bernanke Welcome You to the USSRA (United Socialist State Republic of America)

Dandelion Salad

By Nouriel Roubini
ICH
09/09/08 “Roubini Global Economics”

The now inevitable nationalization of Fannie and Freddie is the most radical regime change in global economic and financial affairs in decades. For the last twenty years after the collapse of the USSR, the fall of the Iron Curtain and the economic reforms in China and other emerging market economies the world economy has moved away from state ownership of the economy and towards privatization of previously stated owned enterprises. This trends was aggressively supported the United States that preached right and left the benefits of free markets and free private enterprise.

Today instead the US has performed the greatest nationalization in the history of humanity. By nationalizing Fannie and Freddie the US has increased its public assets by almost $6 trillion and has increased its public debt/liabilities by another $6 trillion. The US has also turned itself into the largest government-owned hedge fund in the world: by injecting a likely $200 billion of capital into Fannie and Freddie and taking on almost $6 trillion of liabilities of such GSEs the US has also undertaken the biggest and most levered LBO (“leveraged buy-out”) in human history that has a debt to equity ratio of 30 ($6,000 billion of debt against $200 billion of equity).

Comrades Bush, Paulson and Bernanke Welcome You to the USSRA (United Socialist State Republic of America) – ICH.

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see

Bailing Out Fannie and Freddie by Ralph Nader

Jim Rogers: Socialism for the Rich

US government takes over mortgage giants to stave off financial meltdown

Take A Load Off Fannie: Bailout Or Nationalization For The Mortgage Giants?

The Economy Sucks and or Collapse

US Is “More Communist than China”: Jim Rogers

5 thoughts on “Comrades Bush, Paulson and Bernanke Welcome You to the USSRA (United Socialist State Republic of America)

  1. Pingback: “Change” Part I: Has the West Reached Its Limits? by Richard C. Cook « Dandelion Salad

  2. Pingback: The Real Reasons for the Fannie Mae/Freddie Mac Takeover by Richard C. Cook « Dandelion Salad

  3. It’s confusing to me how the Republicans have hood winked U.S. citizens. They wave the free-trade flag and attempt to smear Democrats as socialists (as if that were some terrible insult). Yet, Comrades Bush and company are let off the hook when they nationalize the mortgage lending institution in our country. What’s the deal with the American public?

  4. Pingback: Bailing Out Fannie and Freddie by Ralph Nader « Dandelion Salad

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