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Fannie Mae / Freddie Mac: FAIL, Fed Takeover Underway

Sarah's picture
Fri, 09/05/2008 - 9:54pm — Sarah

Atrios and DKos diarist oxfdblue have details.
This has been building for a while. Boys and girls, welcome to 1929, part deux. Apparently the stocks tanked even after the NYSE called it a day and the traders went home.
You know, Cheney, W and Co. have 80-some-odd days of looting left. What exactly is the next president gonna find in the piggy bank? "I made you an economy, but I eated it" notes?

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lambert's picture

History doesn't repeat

By lambert on Fri, 09/05/2008 - 10:08pm

but it rhymes. Apparently, this has been anticipated for some time....

[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.

First they ignore you, then they ridicule you, then they fight you, then you win. -- Mahatma Gandhi

»
elixir's picture

This should be the main campaign issue, our failing

By elixir on Fri, 09/05/2008 - 10:37pm

economy. Who knows how long it will take for our tattered economy to unravel but it won't happen soon enough to make it a major issue of the campaign. I fear that this costly mess will jeopardize the future of social security leaving it open to privatization by our next president. Please tell me I'm wrong.

I love this job!

I love this job!

»
lambert's picture

All the people who said "Government is the enemy?"

By lambert on Fri, 09/05/2008 - 10:46pm

They're the enemy!

[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.

First they ignore you, then they ridicule you, then they fight you, then you win. -- Mahatma Gandhi

»
vastleft's picture

I'm confused

By vastleft on Sat, 09/06/2008 - 4:37am

All the smart and good people have been telling us that less government is what we need. When have you ever heard a pundit say otherwise? Or any politician since 1980?

Maybe the execs from Fannie and Freddie should be taking over the government. I'll bet it was all the red-tape taxocrats that ruined everything, not those fine businessmen.

»
lambert's picture

RGE Monitor on F/F Fail

By lambert on Fri, 09/05/2008 - 10:45pm

Poorly set up main page doesn't allow individual links here. Summary of Krugman:

Government guarantee is implied and expected so what's happening now is not a surprise and the sky won't fall. Moreover, private-label securitization were the reckless ones over the past few years, not F&F's prime business. F&F are however exposed to falling house prices and prime borrowers walking away from their houses or losing their jobs in large numbers--> GSEs not capitalized enough for this scenario, taxpayer will have to pay as always in crisis situations.

No, the sky won't fall. It will just slowly get close and closer. Sort of a pit and the pendulum concept.

[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.

First they ignore you, then they ridicule you, then they fight you, then you win. -- Mahatma Gandhi

»
Damon's picture

The sky rarely ever falls all at once...

By Damon on Sat, 09/06/2008 - 4:39am

The economy is going to get slowly worse, but the questions seem to be if there will be an official panic, what will set it off, and will a depression follow? I think the answer to the last question is "no", but I don't even want to guess if or when a panic will occur.

But, we've always been at war with Eastasia...

»

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