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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (29389)	8/14/2008 10:38:12 AM
From: DuckTapeSunroof	Respond to of 71588

Re: Is "Too Big To Fail" A Self-Fulfilling Prophecy? To a certain extent it certainly is. (It also represents one of the more unsavory aspects of our current Mixed Economic System: corporate welfare for Wall Street and Capitalism for the poor. Or, as Paulson is reputed to have put it, 'Some companies are too big to NOT be bailed-out, and some people are too small to bail.')

To: TimF who wrote (29389)	8/14/2008 1:56:33 PM
From: DuckTapeSunroof	Respond to of 71588

Greenspan's response to GSE rescue: Bad. In an interview with WSJ, former Fed chairman Alan Greenspan condemns the government's response to the problems confronting mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE). Greenspan has warned for years that their business model threatened U.S. financial stability. He acknowledges that a backstop was unavoidable ("There's no credible argument for bailing out Bear Stearns and not the GSEs"), but thinks the government should have "wiped out" shareholders, nationalized the institutions and then later divided them up into smaller pieces and re-privatized them (as multiple, smaller companies). Greenspan now sees housing touching bottom in the first half of 2009. reuters.com