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FULL FAITH OF THE UNITED STATES GOVERNMENT
In 1977 Jimmy Carter passed the Communities Improvement Act which guaranteed sub prime loans (a euphemism for a very risky loan) with the "Full Faith of the United States Government." It wasn't too bad. Only committing 2 to 3 billion a year. In 1995 Bill Clinton greatly expanded the commitment, into the tens of billions, and has been on record, since leaving office, as thinking it was not such a good idea. All these bad loans, which were funded mostly through AIG, Fannie Mae and Freddy Mac, have come home to roost. We are committed to make good on the loans and take over the collateral property.
Unlike the stimulus package this portion of the bailout money is secured with real property. Don't confuse bailout with hand out (like to the big 3) or stimulus package which is mostly welfare programs veiled as tax cuts and stimulus programs (which we are not committed to fund and have no collateral backing).
on January 27, 2009 at 8:23 PM
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