For years, using legal and illegal means, powerful commercial and political interests have struggled mightily to crush Fannie Mae (FNM) and Freddie Mac (FRE). Ironically, by distorting the causes and cures of the current financial crisis precipitated by these same commercial and political interests, they finally have their chance.
The proposed "bailout" plan, officially known as the Hosuing and Economic Recovery Act of 2008, gives the United States federal government the authority to "save" FNM and FRE by providing them with certain financial assistance or by taking them over. Who determines when FNM and FRE need this government intervention? And what are the grounds for doing so?
Sunday, August 24, 2008
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