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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Hawkmoon who wrote (9924)9/9/2008 8:56:12 AM
From: Terry Whitman1 Recommendation  Respond to of 33421
 
Thanks 4 your thoughts, Hawk.

Yes, they have always been quasi-government entities.

This is about how I see it:

>When government decides to meddle with free markets, imbalances occur which causes capital to be deployed in ways that are economically unviable and unsustainable. A continuation of such behavior--especially to the degree that FNM & FRE have reached--can lead to massive increases in inflation and a painful economic unwinding.

We Americans have come to believe that suffering the consequences of our loose lending and monetary policies can be avoided by escalating those same practices, but we cannot succeed in reconciling an economic imbalance by fostering its continuation.<

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