I dont think anyone is happy with the bail out, but doing nothing would be catastrophic to the markets. Also, many individuals have shares of fannie and freddie in their 401’s or retirement accounts. So it would be a double whammy bankrupting the markets and individuals.
They have common shares? Right now each share is worth less than $1, down almost 90% today. So Hank's plan didn't do much for them, did it?
“Also, many individuals have shares of fannie and freddie in their 401’s or retirement accounts. So it would be a double whammy bankrupting the markets and individuals.”
Shareholders who are still in have committed a serious error. At the *very latest*, when Treasury announced the tenative plan to do what they did yesterday about month ago was the last call for survival.
I agree no one’s happy but this sets a dangerous precedent. Someone is bound to argue, “why didnt the govt bail out the ailing airline industry?” The markets should be able to rebound after the elections, and not all 401K’s are tied to FM. The govt should stay out but now the govt’s actions will open doors for more hand-outs.
People can always sell their shares and buy other stocks or investment vehicles.
People who should have done something did nothing already and that's why we are where we are. There were signs and financial people warning of this 2 years ago, look at the WSJ.
There should be investigations done and check who profited from this. I don't care if it's a Republican or Democrat, they need to be held accountable. People need to put party aside on this issue.