Proceeds from the ads below will be donated to the
Bob Wuesthoff scholarship fund.
Sunday, September 07, 2008 |
OT: Privatize The Profit, Socialize The Loss: Feds Take Over Fannie Mae, Freddie Mac
The Federal government announced it will take over the quasi-private entities Fannie Mae and Freddie Mac. Private shareholders will be last in line for restitution, with the Feds pumping $1 billion in initial capital into each that could go as high as $100 billion. Where does all this money come from? But it's obvious who it's going to: the owners of the garbage paper sold by the now-defunct mortgage originators. It must be fun to own a business so large it "can't fail". Next in line, I bet, are the automakers, all of whom have ginormous debt loads and terrific political connections. Calculated Risk: "Expect more bank failures."
Labels: offtopic
Comments:
two points:
private shareholder SHOULD be last in line. that's the way it works. they took a risk and it's not guaranteed ROI.
as for where is the money coming from? It is us - the US Taxpayer - another ~$25 billion, which may not sound like a lot for the US government, but that is a HUGE hit to to our overwhelming debt.
good times. you can blame the politicians if you want, but the simple fact is good old private citizen American greed is the biggest culprit.
private shareholder SHOULD be last in line. that's the way it works. they took a risk and it's not guaranteed ROI.
as for where is the money coming from? It is us - the US Taxpayer - another ~$25 billion, which may not sound like a lot for the US government, but that is a HUGE hit to to our overwhelming debt.
good times. you can blame the politicians if you want, but the simple fact is good old private citizen American greed is the biggest culprit.
Don't get me wrong: I don't really care what happens to the shareholders. They were essentially milking what they thought was a preferred deal in terms of getting fractional percentage points on interest unavailable to other Federal Reserve Member banks.
Greed may be the culprit, but as I said, it's the attitude that losses should be borne by the "little people" (i.e. taxpayers).
Greed may be the culprit, but as I said, it's the attitude that losses should be borne by the "little people" (i.e. taxpayers).
I like how everybody who says they're in favor of small government wants to basically nationalize the mortgage industry. If Venezuela was doing it those same folks would be screaming bloody murder.
Newer› ‹Older
 |
Post a Comment
Note: Only a member of this blog may post a comment.