The common American has been provided a lot of misinformation about a ‘bailout’. Some call it a seizure, which is obviously more accurate.
America Has Just Unlawfully Nationalized 2 Fortune 500 Companies
Henry Paulson overrules the Constitution and Laws of this country and Nationalizes a company which sees it’s shares drop 90% in one day, while the stock market applauds. Two companies were sacrificed for the common good. But wait, “nor shall private property be taken for public use, without just compensation” is in the Constitution, the 5th Amendment.
Most Americans do not realize these points:
Did you know the recent events with mortgage giants Fannie Mae and Freddie Mac were not ‘bailouts’, but ‘nationalization without recompense’? The action did not follow the recent law Housing Bill passed in July (Text of H.R. 3221: Housing and Economic Recovery Act of 2008) nor the Constitution (5th Amendment).
Approximately $8 B seized, as 79.1% (for simplicity, 80%) of companies are confiscated
A staggering $5.5 Billion dollars was taken from the existing shareholders in Fannie Mae alone, $2.5 Billion from the smaller Freddie Mac, in an unprecedented event on 9/8/08. In this surprise move, Henry Paulson has unconstitutionally nationalized Fannie Mae by making these stipulations in a bold takeover (not a bailout and not a buyout - read on)
How did he take it
The US received approximately 4 Billion warrants to "buy" shares sometime in the future at a price of 1/10000th of a penny. That's $40,000 for what will amount to roughly 80% of the company. The day before the take-over, the value of these warrants would have cost more than $7 each and thus, the total amount which should been paid was a staggering $28 billion. But, since he did not add any funds or convert any warrants, the current shareholders have surrendered 80% or $5.5 Billion dollars in value. Note: a warrant is an option to buy shares with a long-term until expiration; in this case, twenty years
