So much for the Republican idea of free markets. Now that the Bush administration is using our taxpayer dollars to bailout Fannie Mae and Freddie Mac and the mainstream media refuses to look any deeper than the headlines to find out how this happened. This has all the look of a problem that is attempting to be swept under the rug. Here are some of the money quotes:
"There is no guarantee that the takeover will work, and it comes at a potentially massive cost to taxpayers. The government has pledged to inject money in the companies in any quarter in which they would otherwise be insolvent -- up to $100 billion in total for each company. "
How nice! No guarantee that after spending up to 200 billion that this may not work. If somebody in congress proposed such legislation would Bush sign it?
"Paulson also announced a separate program in which the government will start buying securities backed by mortgages -- $5 billion worth, initially. That will, in effect, subsidize the purchase of homes by lowering the interest rate that buyers must pay for a mortgage."
Why do we taxpayers have to be the only ones to buy these mortgage backed securities? Paulson should have made all those banks and institutions who gave out the loans to unqualified home buyers and illegal immigrants and then bundled them into securities be required to buy these mortgage backed securities on a 50 50 basis. Why not they caused this problem in the first place they need to share the pain of the recovery not just us taxpayers.
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