How to fix Fannie Mae and Freddie Mac: Nationalize 'em
Posted July 11th, 2008 by mdonato
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According to the article, Freddie and Fannie (part private and part government operations) have become so large and mismanaged that they pose a serious threat to the US financial system. The answer is to turn it into an entirely government operation and that will fix everything.
I can see it now, the Feds busting in to the Fannie and Freddie offices and proclaiming the most frightening sentence in the English language, "We're from the Federal government and we're here to help!"
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How can we...
...buy out Fannie/Freddie when we have the airlines and GM to bail out? Besides, this is not really happening as we are delusional and spoiled rotten whiners. Chin up, people! The economy is as strong as ever. Just keep buying stuff, they'll be alright.
NOPE!That was just over
Woops!
In an attempt to stem the tide of the market reaction,
the Fed has already told them that they can step up to window to get whatever cash they might need. It provided a short bounce but not much else. Need cash? Step up to the Fed window. Going under because of bad management? Step up to the Fed window. Paid out billions in bonuses over the years for making shaky loans and now you've come up short? Step up to the Fed window. I do wish that people would start reporting the real meaning of "step up to the Fed window".
NOPE! That was just over
NOPE!
That was just over heard from a friend of a friend who was a distant cousin to someone who rented a movie from the same place as someone who works with the fed. After the markets closed they came back and said that was never true.