tom Andersen

Fannie/Freddie Bailout 'Disastrous Fiasco'

The only answer now for the Federal Government, now that they own all the mortgages and the printing presses is obvious: RUN THEM PRESSES! A 10+% annual inflation rate for the next 5 - 10 years will make all the mortgages be back in black. They own both sides of the paper now.

The problem with letting Fannie and Freddie go bankrupt is that, for example, even in a company that is only 10% under water, the act of bankruptcy will usually devalue things by 50% - and the difference goes to - you guessed it - Wall Street vultures. Plus, there are not enough lawyers, paper, and time in the entire country to do such a deal.