Diary

'Congress's Home Mortgage Ponzi Scheme Collapses'

That is what the headline of the Washington Post should have read at the beginning of the so called “world financial crisis”.

The general public who do not have a degree in economics just cannot understand what the crisis is, much less what caused it and Congress would like to keep it that way.

Unfortunately, until we all understand what the real root cause of the “crisis” is, Congress and the New President are just going keep trying to paper over it so that the voters don’t assign blame where it belongs: Congress.

To help people understand the problem, I have written a short story called:

“Congress and the Big Machine”

One day, Congress created a pair of magical golden monkey wrenches called Freddie Mac (the Federal Home Loan Mortgage Corporation) and Fannie Mae (the Federal National Mortgage Association) and then threw them into the gears of the Big Machine called the US economy via an unlocked door named ‘Wall Street’.

Freddie and Fannie knocked around inside the Big Machine for a long time and made a lot of noise, but seemed to have no immediate negative effect. I say seemed to have no negative effect, but there was damage done and Congress saw it.

Bits of gears fell out of the bottom of the Big Machine and Congress, fearing people would find out about it’s foolishness, swept the bits under the rug and declared the Big Machine to be running at top efficiency.  Smoke began coming out of the top of the Big Machine and Congress reassured everyone who saw it that smoke rising from the Big Machine was normal.  Then oil began dumping out of the bottom of the Big Machine so Congress put up a curtain and told everyone that everything was under control, the machine is running perfectly just like they designed it to.

Then the machine started to shudder and vibrate and congress put in ear plugs and said, “we don’t hear anything”.  Then when the machine finally ground to a halt and all the lights went out, President Bush arrived to see what the problem was, Congress said that the Wall Street door was open and the Wall Street mechanics must not have maintained the machine properly and that they (Congress) had to leave in order to go and tar and feather the Wall Street mechanics for their sins and told the President to see what he could do to fix the Big Machine.  And  then after George Bush climbed inside the Big Machine to see what he could do to fix it, Congress hung a sign on the Big Machine that said; “US Economy – Property of George W. Bush”; and then Congress quickly left the building.

The End.

Anyone care to guess what the moral of the story is?