Fannie Mae and Freddie Mac Bailout

I am sure you have heard of Fannie Mae and Freddie Mac. These 2 companies have dominated the financial news for the last few days. These massive companies are on the verge of going under because of failing mortgages. I'll get more into that in just a minute.

What Happens To These Companies Can Have a Devastating Impact On Your Future

The point of this article is to warn you that what happens to these 2 giants can have a devastating effect on you, particularly if you are approaching retirement or already retired.

It is critical that you not take for granted what is happening in the U.S. economy. You must understand the consequences of what is happening, analyze your alternatives, and set a course of action.

Fannie Mae (Federal National Mortgage Corporation) and Freddie Mac (Federal Home Mortgage Corporation) purchase and guarantee certain mortgages. They are responsible for up to $5 trillion in mortgages, including hundreds of billions that are going bad.

According to U.S. Treasury Secretary Paulson, we will see another 2.5 million home foreclosures in 2008. Federal Reserve Chairman Bernanke has testified to Congress that there will be millions of home foreclosures in 2009. As a result, these companies are on the verge of bankruptcy.

So Here is the Critical Point. Congress is Faced With 2 Options

1. Let these 2 companies fail resulting in a complete freeze in the housing market and very likely leading to a depression.
2. Bail out these companies with taxpayer money resulting in a huge increase in our country's debt over and above its already significantly high level.

The country cannot afford to bail out these companies. But, on the other hand, it certainly cannot afford not to bail them out (excuse the double negative and this horrible sentence).

You probably see what I am saying. The government has no choice. It must bail them out.

So what happens? A massive amount of money must be printed out of thin air. This amount of money could be even greater if such companies as Lehman Brothers, AIG, or General Motors fail. This money is on top of money already printed to deal with the insolvency of other financial institutions, the mortgage meltdown, etc.

How Does a Bailout Effect You?

So what is the end result? Soaring inflation, not seen since the 1970's when the inflation rate approached 14%. During the 70's, people on fixed income (including pensions, social security, etc.) were hurt more than any other group in the country. The price of goods went up significantly while their income stayed the same. The stock and bond markets were crushed as interest rates rose.

I don't mean to be an alarmist. But I have lived through some extremely difficult economic times. No, I had not been born at the time of the Great Depression. But I have found that those who do not plan to deal with serious economic times are many times hurt very badly.

I strongly recommend that you evaluate your personal situation and determine a course of action. Don't be lulled into thinking that the U.S. Government will take care of the situation and that everything will be OK. That would be a huge mistake.

What Action Can You Take?

1. One alternative is to continue working - in your current job if at all possible. At least keep your options open if you are presently working.
2. If working with your present company is not a possibility, then look into other means of employment.
3. Consider starting a brick and mortar business - something you would enjoy such as a hobby.
4. Consider starting an internet network marketing business.

How I Handled a Similar Situation a Few Years Ago

A few years ago, I was confronted with a somewhat similar situation. I was close to retirement age but couldn't afford to retire. I was able to successfully start an internet business that allowed me to retire. Not only that, it allows me the ability to handle any financial challenges the economy throws my way.

The key to success in this type of business is to master attraction marketing methods. This approach attracts prospects to you in a very professional way.

The only way to master these methods is to get the very best online network marketing training available. Check out this training source and you will see how inexpensive it is.

You may or may not be interested in generating income in retirement with a home business, specifically an internet network marketing home business.

I have a 4-part series of videos that discuss the challenges I faced when 1) I discovered I couldn't afford to retire and 2) I started an internet retirement business.

These videos talk about the problems I faced and how I solved these problems. If you decide to follow this path, viewing these videos should greatly reduce your learning curve and give you good advice on how to succeed in this type of business. Please let me know if I can help you in any way. I wish you the very best.

Scott enjoys teaching corporate executives and network marketers how to apply attraction marketing online and how to attract free qualified leads on the internet.

Click to enroll at Renegade University to get more training from Scott.

Scott is happy to give a free consultation for serious entrepreneurs. You can reach him toll-free at 877-878-4036 or by email at Scott.Hubbard3@gmail.com.