Redistribution Strategy
As the mortgage and Wall Street bailout proceeds, the outline emerges. The federal government pressures lenders to make loans to low income and racial minority groups. The lenders demand a guarantee. The government agrees that the Freddie/Fannie duo will buy up the resulting loans from the lender, unloading the risk from the lenders.
To execute the plan, the banks only need to adjust the criteria to qualify people identified by the government (and its agents). Add phony valuations of real estate and you’ve got a boom.
Both the lenders and the government know about the business cycle and know that a taxpayer bailout would likely be required. By then everybody in on the scheme would have been paid off. In true bipartisanship, both guilty political parties will claim that nothing can be done. We the taxpayers will pay the bill. The net effect is a massive transfer of money from private hands to government apparatchiks, lenders and, temporarily, to the hapless borrowers. This is what is called redistribution of wealth. The only question is why anyone considering himself either a Republican or a conservative would sign on to any of this.
