Does anyone find it funny that the Bush Administration waited until late on a Friday evening, the day after John McCain finished up a convention in which his admitted lack of economic knowledge wasn’t a topic, to announce that we the taxpayers could soon be in the mortgage business?
The government has formulated a plan to put troubled mortgage giants Fannie Mae and Freddie Mac under federal control, dismiss their top executives and prop them up financially, federal officials told the two companies yesterday, according to three sources familiar with the conversations.
Under the plan, which could prompt one of the most sweeping government interventions in financial markets in U.S. history, federal officials would place the firms under a conservatorship, a legal status giving the government the option and time to restructure and revive the companies, the sources said. The value of the companies’ common stock would be diluted but not wiped out, while the holdings of other securities, including company debt and preferred shares might be protected by the government.
But i guess we shouldn’t worry about taking on over a trillion more in debt, we are just a bunch of “whiners” in the midst of a “mental recession” anyway.