“Hi. I’m America”

Joe Doakes from Como Park emails:

Fannie went broke in 2008 so Congress put them into conservatorship to bail them out. Private firms invested in Fannie and Freddie assuming they’d continue to be bailed out but in 2011, Congress changed the bail-out terms. The investors are suing the federal government for making changes to the bail-outs for Fannie Mae and Freddie Mac.

It’s gotten to the point where people not only expect bail-outs, they expect better and more generous bail-outs, and sue to get them.

Stop the madness. No more bail-outs.

Joe Doakes

Our society needs a 12-step group; Free Money Anonymous.

5 thoughts on ““Hi. I’m America”

  1. When does something become a trend? Here is yet another example of the Ruling Class ignoring a law that the Ruling Class passed less then 4 years ago. Last week it was The Regime announcing via a “blahwg” posting prior to a long holiday weekend that it wasn’t going to comply with Obamacare’s employer mandate. According to the linked article, Congress has yanked the rug from under investors who bought shares in in Fannie & Freddie understanding the rules as made law in ’08. In ’12, Congress changes the rules essentially ignoring the law, and the investors are sueing.
    I’m no fan of Fannie & Freddie, and the ’08 structure was what we see whenever gubmint practices ‘pro-business’ crony capitalism – they privatize the profits for their wealthy, connected contributors & fellow travelers and socialize the losses. But when they pass a law that says one thing and then they do another (and it has to do with seperating wealthy people from their wealth), they can expect the wealthy to come after them in court.

  2. Joe:

    Lets not forget one other detail. They invested in the year 2011. They knew by then what happened to GM and Chrysler bond holders. So why would they want to invest period when they knew that the government might not honor the terms.

    Walter Hanson
    Minneapolis, MN

  3. Walter Hanson-
    One thing we have learned about finance people since 2008, is that their primary responsibility is to accurately calculate risk, and that they are terrible at accurately calculating risk.
    A second thing we have learned about finance people is that they are very, very well paid for doing a terrible job.

  4. Markets act irrationally from time to time. However, they don’t act irrationally forever.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.