Saturday, January 30th, 2010
Can you help me to understand the scale of public debt caused by the Fannie Mae/Freddie Mac bailout?
Wave asked:
Perhaps using other bailouts for comparison, or perhaps other debt and repayment time scales.
Perhaps using other bailouts for comparison, or perhaps other debt and repayment time scales.
February 1st, 2010 at 5:48 pm
As best as I can tell — no one has any idea of what the ultimate cost will be.
All the experts know is that if they are allowed to go under the entire US (and possibly the entire world) economy will go down the tubes. That is the reason so many of the major mutual funds bought into their stock during the past three months or so. They figured the treasury would bail out the companies. Instead the treasury took them over and the stock values went down the tubes. So, if your 401k is a bit lighter you now know why.
About the only thing the experts seem to agree on is that in order to save the economy it is necessary to save both of them — regardless of the cost.
Hope this helps
Jerry-the-bookkeeper