Republicans love them? Yeah, right. OK it seems like it had to be done but this is essentially a line of credit for $200 BILLION dollars secured by my children’s tax dollars.
I long for the days when Clinton’s sex life was the scandal and we had budget surplus. I wonder if there will be one again in my lifetime. I can’t help but think that the government will end having to help Freddie Mac at least (Fannie may be more financially healthy).
This is interesting:
Standard & Poor’s estimates that the People’s Bank of China held $340 billion of these agency securities at the end of June, but has been unable to estimate Asian holdings over all because the data is too unclear.
So we are guaranteeing these companies to preserve American’s ability to get mortgages they can’t afford so that China’s investment is guaranteed? I understand from my reading that the money is structured so that those who currently own would have to lose a lot before the bailout kicks in, but we just saved Morgan Stanley, Citigroup, China, and all the other institutions and governments that bought these bonds.
STOP KIDDING YOURSELF: This is not a free market. How about regulation as we go instead of taxpayers bail out the companies when they really tank but after the big investors have already made their money. Why? Because we prefer “free” markets. That’s just nuts. I think we just socialized our housing market. I’m not sure that is a bad thing (and it was already substanitally protected by the government/socialized), but let the scales fall from your eyes, free marketers — there is no such thing! (that oughta get koolaid going – not to mention my dad who has NEVER made his presence known. will he now??????)