In case you missed yesterdays testimony from Bernanke to Congress, the brain trust decided that the best way to solve the housing mess (e.g. $150 BILLION DOLLARS) was to screw the middle class by dumping the problem on the government (i.e. the tax payer).

We all know the rich have fancy tax accountants to hide and offset their taxes, the poor don’t pay any taxes, and corporations all exist through offshore entities to avoid taxation so the real bag holder is the middle class tax payer.

Here’s an excerpt

Federal Reserve Chairman Ben Bernanke Wednesday proposed that the federal government guarantee so-called “jumbo” home loans worth up to $1 million.

Bernanke proposed that so-called “government sponsored entities” like Freddie Mac and Fannie Mae pay mortgage insurance fees to the federal government. These GSEs would then guarantee loans that are larger than the current $417,000 limit on so-called “conforming” mortgages.

…

Bernanke also said that the final cost of the mortgage market meltdown might ultimately reach the level of losses from the savings-and-loan debacle of the late 1980s. Rep. Kevin Brady, R- Texas, asked if estimates of $150 billion in losses are “in the ballpark of what you estimate to be eventually declared.”
“That’s in the ballpark,” said Bernanke.

I’m glad this fiasco is “well contained” otherwise it might pose some problems to the economy ;) . It looks like the Whisperers were right all along -expect a drop of 600 more points or so w/Dow soon. I’m not doing too bad this week with most of my money in foreign investments and if I survive next week, I’ll move 100% to cash – lots of bargains in January.