September 07, 2008
government
Feds rescue Fannie, Freddie. Of course, they break this news on a Sunday where the market will get a day to adjust to the news. Unfortunately, I don't think the market's initial response will be a good one. The market will most likely see this event as a continual downturn of the US economy. However, it is also a sign of a proactive government. Ultimately though, the government rescue will come at a cost to tax payers indirectly.
I believe that the people in these two companies worked very hard to keep this rescue from happening but ultimately, the circumstances overtook them. I think the problem stemmed from their government mandate to ultimately cover the bad decisions made by others.
I can't wait until the stories, inevitably, come out.
BTW, there are over one million blog entries about this story.
I blogged about this almost three months ago.
Posted by azileretsis at September 7, 2008 02:32 PM
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