Friday, October 10, 2008

Bank Wall Street Bailout Unnecessary: You Lose

Government Prevents the Solution: The dirty secret is that we still have super-lax credit, but the government prefers mega-super-lax credit, which is why the federal government nationalized GSEs Fannie Mae and Freddie Mac to stop a prudent deleveraging runoff--effectively making that smart market solution illegal until 2010--and instead ordered those 2 GSEs combined to buy $40 Billion of "toxic waste" mortgages per month (hat tip: Mish) to add to the bailout's and the Fed's desperate attempts to pump-up the mega-bubble at your expense.

Why are there no lemon laws against bad legislation?

Why did the public buy the bailout?

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