Quote:
Originally Posted by TheLastBoyScout
Spare me. I was correct. My facts were straight.
Fannie and Freddy are GSE's that are privately owned and they are not taxpayer funded.
They are but 2 of many institutions who gave out way too many sub-prime ARMs and are now paying the price. Bear Stearns was hit by the same thing and bailed out for the same reasons.
Government sponsored enterprise - Wikipedia, the free encyclopedia
Bailing out Fannie and Freddie was not an example of cutting bureaucracy as Palin stated. And it was bailed out for economic stability and to keep outstanding mortgages intact... it was not bailed out to save taxpayer money. |
Oh - ye gods.
Stop digging yourself deeper.
This is nothing like Bear Sterns. You are unaware of the structure of these companies. You can keep pushing, but you are quite wrong.
They are
government backed mortgage companies
that allowed for market participation, and as a result they were allowed to set up something equivalent to their own hedge funds. It was a terrible idea and has now collapsed.
The clearest argument comes from Holman Jenkins in the WSJ
http://http://online.wsj.com/article...333956835.html
For decades they have attempted to stradlle the line between government backing and private enterprise. Now we are all paying the price.
But there is no question you are wrong.
Read you own quotes:
Their lenders grant them favorable interest rates, and the buyers of their securities offer them high prices, as the implicit involvement of the Federal government gives them a sense of financial security.
THey are not technically guaranteed - but the special deal allowed them an implict guranatee.