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Making Sense of the Federal Bailout

Discussion in 'BlackHat Lounge' started by The Scarlet Pimp, Dec 20, 2008.

  1. The Scarlet Pimp

    The Scarlet Pimp Jr. VIP Jr. VIP Premium Member

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    Making Sense of the Federal Bailout

    You know things have gone from bad to worse when the federal government seizes control of the two largest mortgage finance companies. Responsible for guaranteeing almost half of the country?s $12 trillion in outstanding home mortgage debt, Fannie Mae and Freddie Mac were forced into receivership earlier this fall.

    Not since the S&L bailout in the 1980s have we seen government intervention on this scale.

    The move was caused by investor concerns over mounting losses. In the past year the two companies lost a combined amount of nearly $14 billion and their stock has fallen more than 90%. The Treasury Department intervened to add stability to the tumultuous mortgage and real estate markets.

    ?Our economy and our markets will not recover until the bulk of this housing correction is behind us,? U.S. Treasury Secretary Henry Paulson said at a news conference. ?Fannie Mae and Freddie Mac are critical to turning the corner on housing.?

    What does it mean to the housing market and, more importantly, cash flow professionals?

    ( more? http://www.growingwealthmag.com/?cat=7 )
     
  2. freqout

    freqout Regular Member

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    I think that they really should have let it crash and burn, to be perfectly honest I really dont think we are going to bounce back because of the bail out. The only people who are going to lose out are the bottom levels of the workforce, which will lose out regardless of whether the bail out happened or not.