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!
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.
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2 comments:
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?
Completely agree.
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