07-15-2008, 03:48 PM | #1 |
Demiurge
Join Date: Aug 2005
Posts: 36,367
|
Financial expert says Fannie and Freddie should go bankrupt
and that is what is best for the economy. He said that we are only delaying the inevitable, and avoiding real reform.
He says these kinds of things in reality don't buoy confidence in foreign investors. This was on NPR. |
07-15-2008, 03:56 PM | #2 |
Join Date: Jan 2006
Location: Seattle, WA
Posts: 10,665
|
The miracle of government programs. I always knew government could do wonderful things for society.
__________________
Interrupt all you like. We're involved in a complicated story here, and not everything is quite what it seems to be. —Paul Auster |
07-15-2008, 04:15 PM | #3 |
Senior Member
Join Date: Jan 2006
Location: Between Iraq and a hard place
Posts: 7,569
|
The government pumping money into Fannie and Freddie is a PR move to show the government is backing their financial obligations, which was the underlying assumption all along when these mortgage securities were rated AAA.
|
07-15-2008, 04:16 PM | #4 | |
Demiurge
Join Date: Aug 2005
Posts: 36,367
|
Quote:
But this move of confidence has appeared to do very little. And the dollar is tanking again. |
|
07-15-2008, 07:28 PM | #5 |
Demiurge
Join Date: Aug 2005
Posts: 36,367
|
What if the Freddie and Fannie bailout (if it happens) costs half a trillion dollars?
Are we going to just print more money, sink the dollar lower, and increase the deficit? |
07-16-2008, 01:58 PM | #6 |
Senior Member
Join Date: Jan 2006
Posts: 5,084
|
What was the experts name. He probably owns a hedge fund that is short those stocks. NPR of course probably didn't mention that.
|
07-16-2008, 02:00 PM | #7 |
Demiurge
Join Date: Aug 2005
Posts: 36,367
|
|
07-16-2008, 02:03 PM | #8 | |
Senior Member
Join Date: Jan 2006
Posts: 5,084
|
Quote:
It is a controversial decision and I come down on the side of let em fail. I don't think their failing or not failing will have a big impact long term either way. |
|
Bookmarks |
|
|