"The Fed's dramatic step came after an emergency conference call by governors on
Monday night. It followed the melt-down of the US chartered agencies -- Fannie
Mae, Freddie Mac, and other lenders -- which together guarantee 60pc of the
entire US home loan market. Fannie Mae's share price fell 19pc in panic trading
on Monday after Barron's magazine said it may need a rescue package"
Okay, but if you look at the graph they have on the page about the rise & fall of Fannie Mae, you will notice that it was completely strong until around November -- about the time the candidates started all their retoric of how 'bad' the economy was ... they CAUSED it. Think people. If you hadn't heard of it on the news all the time, would have ever thought the economy was bad? I mean other than gas prices?
Its like the food prices. Remember how every one said that the food prices were going to go up because of Ethonal? But people had been using ethonal for years without a problem ... until the news media latched onto it!!!
I remember in the 70's when President Carter (or was it Ford?) put a ceiling on milk prices to protect the consumer (especially the little consumer) ... I often wondered if it ever really helped people, but I know it hurt the farmer in the long run.
So what will this bail out do for the housing industry -- my guess is its going to still hurt people because now they have mortgages that they got during the inflated housing market but their houses weren't really worth that much .... lets just hope the banks don't get the bright idea to start asking for the difference in