Quote:
Originally Posted by Tim
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. |
You're making arguments that aren't there.
The management and investment strategies/guidelines of the companies are irrelevant to the conversation. The nature of the companies why they failed and their relation to taxpayers is what was being disussed. These are mortgage instutions that gave out too many subprimes.... they are in poor financial condition as a result......
This whole line of argument goes way beyond and tangentally away from Palin.
I imagine that's the idea.