Why do both Fannie and Freddie have to be bailed out. Why not let one fail?

Discussion in 'Stocks' started by The Kin, Aug 20, 2008.

  1. I don't like the idea of the government loading up on another 5 or 6 trillion in liabilities. But if one is bailed out and the other is left to die, that should allow mortgage operations to continue while teaching all the idiot investors that nothing is ever too big to fail. It would also force risk to be priced into the market once again.
  2. insurance companies and pension funds own tanker loads of the paper and these companies make heavy campaign contributions.

    the taxpayer, Joe12Pack, is already on the hook for the whole load, like it or not.

    an opinion: the bailout will come the day after the election..if it can be put off that long
  3. The economy is a zero sum game. By keeping all these failed institutions alive, we're gonna see some major inflation ahead. All this funny paper could never be exchanged for real goods and services.