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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: Maurice Winn who wrote (70347)9/12/2008 3:34:09 PM
From: Jacob Snyder1 Recommendation  Read Replies (1) | Respond to of 74559
 
re: who gets bailed out:

The bailout proved a boon for Fannie and Freddie bond prices, which have rallied on news of the government's support. These bonds are widely held by central banks and other foreign investors, and their pressure on the U.S. Treasury was instrumental in promoting the government action, people familiar with the matter say.
online.wsj.com

So, bondholders (largely foreigners, since Americans have a net negative savings rate) have enough political power, to make sure they never lose money. The stockholders don't.