Brahm

Fannie/Freddie Bailout 'Disastrous Fiasco'

Agree with the story-line that this is bailout of a bunch of **** ( I can't write or outright say it in open public forum, even though Jim can!) and incompetents, some of whom should have either been in jail a long time ago or cast-out from financial markets (as "unreformable"). However, sadly these are the privileged and entitled froth we should never have the fortune to have had.

It is not the bailout per se that is bad, but, as Cheng said, it is the manner it has been formulated and then executed. Unfortunately, no one has gone to jail yet for all this mess. Perhaps, no one will have to, save some lowly broker or mortgage banker in the distant future.

Rescuing Frannie

Yes, the self-serving upper management should go. There is also practically little left to justify shareholder control or influence for these entities. I hope the Government would appoint auditors to assess what is left that is due shareholders. My guess is "Nothing." As regards, the preferred shares, the holders should also bear some responsibility and take a haircut to teach them a lesson on responsibility. They have been enjoying the good income (and good times) for years without using significant brainpower in doing so.