"Dave" wrote in message
...
On Sun, 7 Sep 2008 21:09:28 -0700, "Capt. JG"
said:

"Bailed out" is just a phrase. Until it's given some content, one can't
talk
about the subject intelligently. Based on the very sketchy information
I've
seen so far, it looks to me like equity holders are being offered far
too
good a deal. Initially it looks like they come away with 20% of the
equity
of the reorganized enterprises if profitability is restored.


Yes, the economy is in bang up shape! Vote for Palin! She'll kill a few
moose.

I've now seen a bit more about the proposed plan. Too little too late. And
for too generous to the companies' stockholders. Anyone who has been
following the story for a few years would recognize that these companies
have been heading for a crackup for some time, and Congress has been
turning
a blind eye, blinded by lobbyists and campaign contributors.

The following from one of today's news stories:

"Republicans have long pushed for a structured overhaul of Fannie and
Freddie. By contrast, Democrats have warned against making major changes
until the companies were stabilized. The companies have traditionally had
stronger backing from Democrats who ... for years have fended off calls
for
greater oversight....

Sen. Obama has received $105,849 from donors tied to the companies since
he
ran for the Senate four years ago, making him the third-largest recipient
in
Congress and among the top 25 listed in a recent report by the Center for
Responsive Politics, which examined contributions dating to 1989.

Sen. McCain has not listed in the report, and proponents of overhaul say
lobbyists have tried unsuccessfully to win him over."

And meanwhile you have Shumer and Frank continue to push for the companies
to buy more mortgages, putting them deeper in the hole. Lobbyists
apparently
had no trouble winning them over. Fortunately, the plan does require both
companies to stop their lobbying activities.


Hate to tell you, but as a result of the take-over, both companies will be
buying even more mortgages. This debacle is a direct result of the removal
of regulations in the last seven years.


--
"j" ganz @@
www.sailnow.com