Sunday, September 07, 2008

I don't know how many houses I own

Looks like the Fannie/Freddie bailout provides for the U.S. Treasury to buy stock.
The Treasury can purchase up to $100 billion of a special class of stock in each company as needed to maintain a positive net worth.
So now we'll all own more houses than we can count!

2 comments:

Scooter said...

Terrible policy though I'm not sure what else could have been done politically.

NO MORE CORPORATE (OR QUASI-GOVERNMENTAL) WELFARE...EVER. This is unforgivable. I can at least understand the motives behind welfare-welfare.

Governmental assurances assure only one thing...bad biz decisions. If I have a governmental cushion, I'm going to take advantage of that and that means taking into account the risk factors which might be mitigated by gov't assurances.

I mean this to include tax breaks, too, especially those on local and city levels...which my state and town are only too free to dole out.

If I make a bad call on any decision, why should you, LJ or Michael bail me out?

Stephanie said...

Completely agree.