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It's about time they work out a plan to move forward and add some stability to these two companies and the market. I don't like the idea of having the taxpayer
by Protophore 18y ago
It's about time they work out a plan to move forward and add some stability to these two companies and the market. I don't like the idea of having the taxpayers foot the bill for all of this mess, but the alternative is even worse (doing nothing and letting the market continue to its downward trend). I would imagine that in this day and age the majority of people have some, if not all, of their retirement money in the stock market either through 401ks or through private brokerage firms. Either way the the common American gets to pay for this mess - through depressed stock prices or through taxes used to bail out Freddy, Fannie, and others like them.
It's got to suck for anyone how owned shares of either of these two firms. Down something like 80% this year. Ouch!
- Xichekolas 18y ago> Down something like 80% this year. Well, now that they have been nationalized, it's more like 100%. From my understanding (as gleaned from the Economist), this will wipe out shareholders, both common and preferred. But either way, I think the Feds are doing a good thing, as these guys were pulling Enron-style shenanigans, (guaranteeing their own mortgages, etc) and dominating the conforming mortgage market due to their access to cheap debt. Let regular banks step in and serve that market, instead of being confined to riskier mortgages that the two giants weren't allowed to buy.