Oh, I'm not saying it's a bad idea. It's a good thing that they did it, and it should have been done much sooner because they simply don't have enough regulation to keep things like this from going completely down the tubes.
I'm pointing at it, and laughing, because it's TEH HAWRIBLE SOCIALIZM.
I'd say the feds made a good call in getting involved. Their mistake was not getting involved in regulating industry earlier, which is what contributed to a global economic headache.
Right. This wasn't so much of a "good call" as it was a "necessary call." There's plenty of blame to go around for not keeping tabs on Mac & Mae's practices to begin with, but at this point of time, there's simply no way around picking them up.
Pah. Any 'free' market that has two companies holding 50% of the trade when the trade is massive ain't as free as they like to pretend to themselves.
There's something there stopping new entrants and proper competition, no idea what.
Markets fail, that's been known for centuries, Govts are responsible for looking for points of failure in advance and sorting them out. That they failed to do so is an ideological stupidity combined with gross negligence, but unusually it predates Shrub.
" For the US, this is a little different. I mean, they obviously couldn't swallow 10% of homeowners being homeless. "
Nothing personal, but i HATE this fucking argument. They had enough money to afford the house, they should have MORE than enough to rent. If not, well, they shouldn't have bought in the first place.
Fannie Mae actually started out as a socialized institution - then its problems really started when it became privatized. There's a nice summary here, albeit from an obviously liberal point of view.
As the other two posters said, par for the course up here. It's kind of funny that they'll do it for a mortgage crisis before doing it for a health crisis, but there you go.
Self-regulating hand of the market is self-regulating Except when it isn't NO COMMIES!
They can't agree on anything that involves government involvement of the Health Care, but the mortgage crisis hits the financial health of the nation and is causing major problems. I mean, when HGTV does a series about people in danger of loosing their homes, its epidemic. Makes me feel better - I'm not alone.
I look at this and I say, "is this a Nortel-type opportunity?". Should I buy shares in Fanny or Freddie when they bottom-out? And they are still heading down. No dividends for the next little while, the Russians and the Chinese dumping the bonds, (116?) small US banks heavily invested in shares that will no longer be generating revenue... But what is the difference between common and preferred shares, and should that be a consideration? At what point will the shares be worth 10% of their reasonable potential (as in, what they will be worth in two years' time)?
Let's blame the Chinese! If they hadn't dumped the dubious credit papers, this wouldn't have happened!
(Since you can never know with me, yes, it is irony. And it is also true. The real irony is that The World's Greatest Nation routinely depends on its supposed enemies for its prosperity in a number of ways.)
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(no subject)
Date: 2008-09-08 01:37 pm (UTC)(no subject)
Date: 2008-09-08 02:17 pm (UTC)I'm pointing at it, and laughing, because it's TEH HAWRIBLE SOCIALIZM.
(no subject)
Date: 2008-09-08 03:01 pm (UTC)(no subject)
Date: 2008-09-08 05:08 pm (UTC)(no subject)
Date: 2008-09-08 05:11 pm (UTC)(no subject)
Date: 2008-09-08 02:36 pm (UTC)Right. This wasn't so much of a "good call" as it was a "necessary call." There's plenty of blame to go around for not keeping tabs on Mac & Mae's practices to begin with, but at this point of time, there's simply no way around picking them up.
(no subject)
Date: 2008-09-08 07:26 pm (UTC)Pah. Any 'free' market that has two companies holding 50% of the trade when the trade is massive ain't as free as they like to pretend to themselves.
There's something there stopping new entrants and proper competition, no idea what.
Markets fail, that's been known for centuries, Govts are responsible for looking for points of failure in advance and sorting them out. That they failed to do so is an ideological stupidity combined with gross negligence, but unusually it predates Shrub.
(no subject)
Date: 2008-09-09 01:08 am (UTC)(no subject)
Date: 2008-09-08 09:23 pm (UTC)For the US, this is a little different. I mean, they obviously couldn't swallow 10% of homeowners being homeless. "
Nothing personal, but i HATE this fucking argument. They had enough money to afford the house, they should have MORE than enough to rent. If not, well, they shouldn't have bought in the first place.
(no subject)
Date: 2008-09-09 01:06 am (UTC)(no subject)
Date: 2008-09-08 02:03 pm (UTC)teehee
As the other two posters said, par for the course up here. It's kind of funny that they'll do it for a mortgage crisis before doing it for a health crisis, but there you go.
Self-regulating hand of the market is self-regulating
Except when it isn't
NO COMMIES!
sorry for all the loleconomist. I just woke up.
(no subject)
Date: 2008-09-08 03:54 pm (UTC)-)
(no subject)
Date: 2008-09-08 03:57 pm (UTC)Questions
Date: 2008-09-08 06:43 pm (UTC)(no subject)
Date: 2008-09-09 07:08 am (UTC)(Since you can never know with me, yes, it is irony. And it is also true. The real irony is that The World's Greatest Nation routinely depends on its supposed enemies for its prosperity in a number of ways.)
(no subject)
Date: 2008-09-09 06:21 pm (UTC)