Bush Administration to bail out Fannie Mae and Fre

[bugscufle]

The Bush administration acknowledged today that it couldn't afford to leave mortgage giants Fannie Mae and Freddie Mac on their own to face another ravaging by Wall Street.

The government announced plans to provide financial backup to the battered companies, amid fears that they could face failure as home loan defaults keep rising.

Treasury Secretary Henry M. Paulson Jr. said the Bush administration’s proposal, which would go to Congress this week, would boost the companies’ ability to borrow from the Treasury if needed, and would allow the Treasury to buy stock in the companies to bolster their capital.

Paulson last week insisted that the companies’ finances were sound.

http://latimesblogs.latimes.com/mone...overnment.html

Guess the stockmarket and oil will be up Monday, and the dollar will be down. This is inevitably inflationary. Some day the cards are all going to come tumbling down.

What is that form of government when the government runs the businesses?

[bugscufle]

"In a nation that holds itself up as a citadel of free enterprise, the government has transformed from a reliable guarantor into effectively the only lender for millions of Americans engaged in the largest transactions of their lives."

http://www.nytimes.com/2008/07/14/washington/14guarantee.html?_r=1&hp&oref=slogin

[bugscufle]

The nation’s banks are in far less danger than they were in the late 1980s and early 1990s, when more than 1,000 federally insured institutions went under during the savings-and-loan crisis. The debacle, the greatest collapse of American financial institutions since the Depression, prompted a government bailout that cost taxpayers about $125 billion.

http://www.nytimes.com/2008/07/14/bu...14bank.html?hp

If one votes for Democrats or Republicans, one is voting for both socialism and debacles.

[msta999]

If one votes for Democrats or Republicans, one is voting for both socialism and debacles.

I agree with this, too bad we don't have an option.

[bugscufle]

There are times when life does not give one options.

Most people just accept the consequences. Occasionally, some rare individual goes out and strives to create their own option. Often times, these individuals change history, or at least inspire the ones that do.